TOKYO (Jan. 21, 2009) —Yokohama Rubber Co. Ltd. (YRC) expects to fall $78 million into the red for the fiscal year ending March 31 based on slumping demand and a stronger-than-expected yen.
Yokohama also anticipates operating income to drop nearly 58 percent from fiscal 2008 to $156 million and sales to be 5.2 percent shy of last year at about $5.8 billion.
YRC attributed the slumping sales to the global economic downturn and said its revised projections are based on annual average exchange rates of 100 yen per dollar, down nearly 3 percent from earlier projections. The exchange rate this week is roughly 89 yen per dollar.
The latest forecast also is considerably lower than the firm's projections issued Nov. 12.
As a result of the lowered earnings, YRC management is reconsidering the year-end dividend of 7 yen that it had planned to recommend.