TOKYO (Nov. 19, 2003) — The high value of the yen and sluggishness in the Japanese replacement tire market contributed to a slight fall in Yokohama Rubber Co. Ltd.'s consolidated sales for the first half of fiscal 2004.
In its Tire Group, Yokohama reported a 0.8-percent decline in sales to $1.17 billion for the period, and a 27.5-percent downturn in operating income to $18.6 million.
In North America, Yokohama posted sales of $296.6 million in the half, down from $317.3 million last year.
Overall, the company reported consolidated net sales of $1.67 billion for the half, down 0.1 percent. Operating income fell 15.9 percent to $42.4 million. Yokohama said the fall was primarily a result of an increase in selling, general and administrative expenses, though cost-cutting measures largely offset rises in raw materials prices. Net income fell 23.0 percent to $13.6 million, in part from a decrease in gains from sales of fixed assets, the company said.
For the rest of the fiscal year, Yokohama forecasts a 0.1-percent decrease in consolidated net sales to $3.67 billion and net income of $91.7 million—a 1.4-percent fall.