TOKYO (May 12, 2005) — Yokohama Rubber Co. Ltd.'s operating profits slipped slightly in fiscal 2005 on higher raw materials costs, but revenue grew 4.5 percent on the strength of tire sales outside of Japan.
Despite the earnings setback in the fiscal year ended March 31, Yokohama management is forecasting healthy gains in earnings and sales for fiscal 2006, although the reasons for the positive outlook were not disclosed.
For fiscal 2005, operating income slipped 0.6 percent to $195.5 million while sales climbed to $3.91 billion. Net income grew 9.6 percent to $105.2 million, partly on lower taxes.
Tire Group sales and operating income grew 6.7 and 19 percent, respectively, to $2.87 billion and $169.5 million, on the strength of “favorable” overseas business, particularly in Europe, Asia and the Middle East, Yokohama said.
The firm's North American operations nearly doubled operating income to $19.5 million on 7.5-percent better sales of $671.2 million.