TOKYO — Yokohama Rubber Co. Ltd., paced by OE sales in China and other Asian markets, reported double-digit growth in operating and net profit for the quarter ended March 31 on 2.3-percent higher sales.
Operating profit rose 27.5 percent to $130 million on sales of $1.38 billion, raising the operating ratio nearly two points to 9.5 percent. YRC cited positive changes in the price/mix component and marginally lower raw materials costs for the earnings gain.
Net income was up 18 percent to $85.7 million.
In the tires segment, sales revenue increased 1 percent to $960.3 million, led by strength in the OE business in China and other Asian markets outside Japan, along with higher sales of winter tires in Japan.
Tire segment revenue declined overseas in replacement tires, reflecting above-normal sales levels in the first quarter of 2017 ahead of pending price increases at that time. Yokohama did not provide specific regional results.
Tire segment operating income rose 6.7 percent to $74.1 million, resulting in an operating ratio of 7.7 percent.
In the ATG off-road tire segment, revenue increased 13.4 percent to $155.8 million, thanks to strong gains in OE business and a recovery in demand for agricultural machinery, Yokohama said.
This segment comprises business in tires for agricultural machinery, industrial machinery and other off-highway applications.
Sales also rose overall in the Multiple Business segment, led by business expansion in high-pressure hoses and in industrial materials.
Yokohama is abiding by its earlier full-year fiscal projections for 2018 — a jump in revenue of nearly 24 percent to about $6.2 billion, with an operating ratio of 9.4 percent and net earnings on par with 2017.