Yokohama Rubber Announces Rise in First-Quarter Sales.Tokyo, Japan, Aug 9, 2006 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - The Yokohama Rubber Co., Ltd. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 5101), posted an 11.0% increase in net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight , to 106.8 billion yen, in the three months ended June 30 - the first quarter of fiscal 2007, April 1, 2006, to March 31, 2007. That increase is over the first quarter of the previous year, and it resulted primarily from robust growth in overseas tire business. Supplementing the sales gains in tires was sales growth in Yokohama's Multiple Business Group (diversified diversified (di·verˑ·s products), notably in high-pressure hoses and in aircraft products. Net income declined 16.2%, to 1.2 billion yen, on a 34.2% decline in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , to 1.8 billion yen. High and rising prices for raw materials and an increase in selling, general and administrative expenses were the chief reasons for the decline in profitability. By business segment, sales increased 11.8% over the same period of the previous year in Yokohama's Tire Group, to 78.2 billion yen, and increased 8.9% in the Multiple Business Group (diversified products), to 28.6 billion yen. Leading the sales growth in tires were strong gains in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , in Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. , and in China. Tire sales also benefited from increased shipments to automakers in Japan. The rising prices for raw materials offset the sales growth in the Tire Group, and operating income in the group declined 64.6%, to 1.0 billion yen. In the Multiple Business Group, sales gains in high-pressure hoses, marine hoses, and aircraft products more than offset a sales decline in golf products. Sales growth, cost-cutting measures, and progress in improving the product mix restored the Multiple Business Group to profitability. The group converted a 32 million yen operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in the same period of the previous year into operating income of 1.0 billion yen. The increases in raw material prices have been larger than management at Yokohama expected, and that has prompted management to lower the full-year earnings projections it announced on May 11. Management now expects operating income to decline 27.1% in fiscal 2007, to 16.0 billion yen, compared with the earlier projection of a 23.8% decline, to 21.0 billion yen. Net income benefited in fiscal 2006 from a tax benefit associated with earlier write-downs of equity in a U.S. subsidiary. Absent that benefit, management expects net income to decline 67.4%, to 7.0 billion yen, compared with the earlier projection of a 33.3% decline, to 10.5 billion yen. Management abides by its earlier projection of a 7.3% increase in net sales, to 485.0 billion yen. About Yokohama Rubber Co., Ltd. Yokohama Rubber Company, Ltd., was established in 1917 and is the second largest producer of automobile tires in Japan and a leading company in the Japanese aircraft components industry. It manufactures and markets tires and tubes for passenger cars, trucks, buses,etc. as well as water tanks and lavatory modules, and a variety of other aircraft components made with rubber, metal or composite materials composite material or composite, any material made from at least two discrete substances, such as concrete. Many materials are produced as composites, such as the fiberglass-reinforced plastics used for automobile bodies and boat hulls, but the . For more information, please visit www.yrc.co.jp. Source: Yokohama Rubber Co., Ltd. Contact: Yokoham Rubber Company Hisatake Kinoshita Corporate Communications Dept. Tel: +81-3-3432-7111 Fax: +81-3-5400-4570 info@yrc-pressroom.jp Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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