Yokohama Rubber’s Q1 profit jumps 56%.
Yokohama Rubber has reported Q1 2017 financial results including an increase in profit of 56.4% over Q1 2016 to 5.7 billion yen ($50.1 million) on a 32% increase in operating income to 9.1 billion yen ($80.2 million).
The company’s net sales for the quarter grew 14.2% to 147.7 billion yen ($1.3 billion). The increases were attributed to overseas sales gains in the company’s tyres segment, high-pressure hose segment and in Hamatite-brand automotive sealants in Yokohama’s multiple business segment.
Results for Alliance Tyre are included in Yokohama’s Q1 results for the first time. In Yokohama’s tyres business, operating income increased 28.4% to 6.9 billion yen ($60.8 million) on a 4.3% increase in sales, to 105.2 billion yen ($928.2 million). Business expanded strongly in the original equipment sector, led by growth in China, Yokohama said. Replacement sector growth took place in Europe and North America with no change in Japan. Operating profitability increased in Japan, however, driven by sales gains for Yokohama’s Advan and fuel saving BluEarth tyre line.
In the Alliance Tyre (ATG) segment, operating income totaled 637 million yen ($5.6 million) on sales of 14.9 billion yen ($131.4 million). Yokohama said sales in the segment matched management’s expectations in unit volume and value. Global weakness in grain prices weighed on demand for agricultural machinery and thus undercut the ATG business in the original equipment sector, but ATG sales increased in replacement tyres