TOKYO (May 13, 2004) — Yokohama Rubber Co. Ltd. expects the continuing rise in raw materials prices and the high value of the yen to eat into earnings this coming year for a second consecutive year.
Yokohama's forecast accompanied the release of the Tokyo-based tire maker's fiscal 2004 financial results, which show a 9.1-percent drop in operating earnings and a slight gain in sales.
For fiscal 2005 — the year ending March 31, 2005 — Yokohama anticipates drops of 7.3 and 12.9 percent in ordinary and net income, respectively, while sales are forecast to rise 2.1 percent.
For the year ended March 31, 2004, Yokohama reported operating income of $186.3 million and sales of $3.55 billion. Net income rose slightly, to $91.3 million, aided by a reduction in taxes by Japanese authorities.
Operating profits in the company´s Tire Group fell 11.5 percent, to $135.1 million, while sales grew 0.6 percent, to $2.55 billion on the strength of exports to Europe, Asia and Oceania. Sales of original equipment tires increased from the previous year, while replacement sales were basically unchanged, the company said.