TOKYOYokohama Rubber Co. Ltd. (YRC) suffered drops in operating and net income for the nine months ended Sept. 30, based largely on sluggish sales in Japan and escalating price competition.
YRC said operating and net earnings fell 4.4 and 25.7 percent, respectively, to $252 million and $151 million. The drop in operating profitability occurred despite declining prices for raw materials and a weakening yen.
Sales rose 3.2 percent to $3.67 billion on the strength of robust tire unit growth in North America and expanding sales volume in China and Russia, YRC said.
YRC's tire segment operating income fell 10 percent to $184.3 million, while sales grew 3.3 percent to $2.88 billion. YRC did not disclose regional results.
The escalating competition in the tire segment prompted Yokohama management to downgrade the company's fiscal 2015 earnings projections from August, with operating income now expected to fall 6.9 percent short of the fiscal 2014 level and net income to be down 18.5 percent.