TOKYO (Feb. 14, 2013) — Yokohama Rubber Co. Ltd. (YRC) more than doubled net income last year on nearly identical sales, record results that the company chalked up to a recovering domestic market, price increases, lower raw materials costs and a weakening yen.
Yokohama's net income nearly tripled to $408.7 million on sales of $7.01 billion. Operating income shot up 85.7 percent to $622.8 million, or 8.9 percent of sales. Fiscal 2012 was Yokohama's first fiscal year that coincided with the calendar year.
The company's tire operations' operating income nearly doubled to $63.7 million on a 0.6-percent drop in sales to $5.57 billion. Sales to auto makers in Japan increased strongly and sales were solid in Japan's replacement market. Success in securing market acceptance for price increases partly offset a decline in demand in overseas markets, YRC said.
Sales in North America inched up 1.9 percent to $1.39 billion. Operating income attributable to North American operations rose 9.9 percent to $71.9 million.
Yokohama management anticipates double-digit growth again this year in sales, to about $7.9 billion, and earnings, which would maintain a net income/sales ratio of 5.8 percent.