TOKYO — Yokohama Rubber Co. Ltd. (YRC) reported double-digit gains in sales and earnings for the nine months ended Sept. 30, reflecting "robust" results in the firm's tire business, led by strong sales in Russia, China and Southeast Asia.
Operating income for the period jumped 39.7 percent to $238.1 million on 13.8-percent higher sales of $4.24 billion, yielding an operating ratio of 5.6 percent. Net income nearly doubled to $150.6 million.
The strong results through three quarters prompted Yokohama to say it abides by the full-year fiscal projections it announced in August — operating income of $450 million and net sales of $5.95 billion.
Yokohama's tire segment reported 14.8-percent better operating income of $171.3 million on a 7.3-percent rise in sales to $3 billion, yielding an operating ratio of 5.7 percent. Yokohama said it achieved the gain in operating profitability despite the adverse effect of upward movement in prices for raw materials.
YRC attributed the revenue gain to strong overseas OE sales, especially in China and Russia, and strong replacement sales gains in Russia and in Southeast Asia. YRC's home market benefited from the launch of the iceGUARD 6 studless snow tire and strong sales for other high-value-added products.
In the firm's ATG OTR tire segment, sales of tires for agricultural and industrial machinery and other off-highway applications increased in both the OE and replacement markets to $419.2 million, in line with management's expectations.
Yokohama did not report separate third-quarter results or regional results.