TOKYO (Nov. 10, 2005) — Yokohama Rubber Co. Ltd. posted a 10.7-percent gain in operating income during the six months ended Sept. 30, as unit tire sales growth and cost reduction programs more than offset increases in raw material costs.
Yokohama management predicts the trend will continue, forecasting an improvement in fiscal 2006 operating income of 9.8 percent over 2005.
Led by tire sales growth in North America and Europe, Yokohama reported a 6.1-percent improvement in overall sales during the period to $1.78 billion.
Operating earnings for the six months increased to $42.5 million, pushing the profits/sales ratio to 2.3 percent. Net income grew exponentially on a decline in net income to $118.2 million.
Tire group sales grew 7.6 percent to $1.29 billion, while operating income increased 5.7 percent to $32.8 million.
Sales in North America grew 11.4 percent during the period to $338.4 million, while operating earnings surged 34.3 percent to $9.45 million.
Management has proposed raising the year-end dividend 50 percent to 6 yen (about 5.3 cents) per share.