The new projections call for net sales to increase 10.6% over the previous year, to 550 billion yen (£2.65 billion), and for operating income to increase 56.6% to 33 billion yen (£159.22 million). The company also announced a downward revision in its projection for growth in consolidated earnings, with net income now projected to rise 28.3% to 21 billion yen (£101.32 million).
Yokohama’s revised projection for net sales is 1.9% higher than the projection announced on Nov. 9, 2007, when the company released its interim fiscal results, and the projection for operating income is 3.1% higher than that projected earlier. Yokohama’s revised projection for net income is 7.9% lower than the earlier projection.
The factors behind the upward revisions in projected sales and operating income were stronger-than-expected sales growth in markets outside Japan. The downward revision in projected net income reflects the strengthening of the yen, which diminished the yen-denominated value of foreign-currency receivables. It also reflects valuation losses on investment securities. (Tyres & Accessories/Staffordshire, U.K.)