TOKYO (May 12, 2009) — Yokohama Rubber Co. Ltd. (YRC) posted a net loss of $56.2 million in the fiscal year ended March 31 as sales fell 6.2 percent and operating income plunged 61.3 percent.
Yokohama blamed its downturn in profitability on lower sales, the appreciation of the yen, productivity declines associated with slumping demand and the continuing upward trend in raw material costs. Operating income sagged to $127.4 million as sales fell to $5.15 billion.
Despite the loss and economic malaise, YRC management projects a return to the black and a rebound in operating income for fiscal 2010, based on an expected decline in raw material costs. Nonetheless, YRC's sales for the year ending next March 31 will fall about 5 percent shy of the fiscal 2009 sales.
YRC's Tire Group's operating income fell 62 percent to $98.4 million on 4.8 percent lower sales of $3.98 billion, as the group suffered sales declines both domestically and internationally. The latter weighed heavily on the results as the appreciation of the yen eroded the value of overseas sales, YRC said.
Yokohama's operations in North America reported a 39.9-percent drop in operating income to $40.2 million as sales slipped 10 percent to $1.01 billion.