In 2016, the Yokohama Rubber Co.’s profit declined by 48.3% to $166 million. This decline in profit is attributed to a 22.4% decrease in operating income, to $374 million and 5.3% decline in net sales, to $5.2 billion. Additionally, declining prices and the appreciation of the yen contributes to a downturn in sales and earnings.
Sales in Yokohama’s tires segment declined 10.0%, to $3.9 billion, and operating income declined 15.6%, to $321 million. In North America, YRC reported flat unit sales.
In July 2016, Yokohama acquired Alliance Tire Group. YRC included the operations of Alliance Tire Group in its consolidated results as the ATG segment as of July 1, 2016, and ATG sales were consistent with management’s expectations in volume and value, the tiremaker said.
Sales in the ATG segment totaled roughly $225.5 million. However, Yokohama has recorded an operating loss of approximately $18 million for the ATG segment in 2016. The loss reflects the inclusion of acquisition-related expenses and the amortization of goodwill.
Yokohama Rubber Co.’s financial report includes its tire business as well as results from its multiple business segment (this includes hoses, sealants, electronic coating and more).
