Management now projects a consolidated operating income of 13 billion yen, down 60.7% from the previous fiscal year; a consolidated net loss of 5.5 billion yen, down from a consolidated net profit of 21.1 billion yen in the previous fiscal year; and consolidated net sales of 517 billion, down 6.2% from the previous year. The revised projection for operating income is 13% higher, the revised projection for net loss 31.3% smaller, and the revised projection for net sales 0.6% lower than the previous projections.

Yokohama attributes the upward revision in its earnings projections to better-than-expected progress in reducing selling expenses and to smaller-than-expected losses on foreign currency denominated assets. The smaller losses on foreign currency denominated assets are attributable to the weaker-than-expected yen at fiscal year end.

In preparing the earlier fiscal projections, management had assumed fiscal year-end exchange rates of 100 yen to the U.S. dollar, compared with 114 yen to the U.S. dollar at the previous fiscal year-end, and 143 yen to the euro, compared with 162 yen to the euro at the previous fiscal year-end. The actual exchange rates at fiscal year-end were 101 yen to the U.S. dollar and 144 yen to the euro. (Tire Review/Akron)