TOKYO — Yokohama Rubber Co. Ltd. (YRC) reported higher earnings and record sales for fiscal 2017.
Operating income rose 22.7 percent to $463.4 million on 12.1-percent better sales of $5.96 billion, increasing the operating ratio three-fourths of a point to 7.8 percent.
Net income jumped 87.5 percent to $314.3 million.
YRC did not elaborate on specific reasons for its earnings improvements. Most of its major competitors reported earnings declines for the same period because of elevated raw materials costs.
Yokohama's tire segment reported 10.3-percent improved operating income of $357.7 million on 6.9-percent higher sales of $4.3 billion, as the company recorded increased OE and replacement business both domestically and in selected international markets. Yokohama said "winning factory fitments on premium-grade" cars is a strategic priority.
Sales in the ATG OTR tire segment — agricultural, industrial, construction, and forestry tires — of $566.4 million were "consistent with management's expectations." Sales were more than double those in 2016, but the prior year covered just six months of revenue from the Alliance Tire Group acquisition.
Yokohama is forecasting 10.7- and 3.7-percent gains in operating income and sales for the current fiscal year, along with a 1-percent gain in net income.