TOKYO (Dec. 9, 2002) – Yokohoma Rubber Co. Ltd. executives are eyeing 5-percent annual sales growth through 2005 as part of their plan to achieve an operating earnings/sales ratio of 8 percent.
The targets are spelled out in the company's “1-5-8 financial goals” strategy for the coming three years: asset turnover of 1 percent, annual sales growth of 4.8 percent and an operating ratio of 7.6 percent.
Specifically, Yokohama said it hopes to reach $3.74 billion in sales and post more than $28 million in operating earnings.
The goals are part of corporate grand design strategy, which was devised by forecasting changes in lifestyle, society automotive industry and other key factors for the next 10 years, Yokohama said. The company wants its business to be driven by strong brand power.
To achieve its goals, Yokohama plans to increase tire exports, set up more manufacturing bases in Asian countries outside of Japan and enhance original equipment supply activities with Japanese car makers' global operations.
Concurrently, Yokohama will work to further enhance its performance tire image on the passenger/light truck tire side while also rolling out new “world-level” products for trucks and buses.
In the non-tire Multiple Business Group, Yokohama will strive to renew its product range, expand businesses already ranked No. 1 or 2 in market share, emphasize business activities in China and North America, and establish an as-yet-unidentified new business unit.
In its research and development area, Yokohama intends to upgrade its capabilities in materials, analytical simulation and process technologies under the theme, “superior function, safety and environmental friendliness.”