Yokohama Rubber H1 2020: 20.6% Decline in Sales Revenue - Tire Review Magazine

Yokohama Rubber H1 2020: 20.6% Decline in Sales Revenue

Yokohama faced a downturn in unit sales volume and an upturn in unit costs associated with reduced production volume.

The Yokohama Rubber Co., Ltd., announced its business and financial results for the first half (January to June) of fiscal year 2020, reporting an 88.3% decline in operating profit and a 20.6% decline in sales revenue.

The company said profit attributable to owners of its parent company declined 92.5% from the same period of the previous year, to 1.3 billion yen ($12.3 million), on an 88.3% decline in operating profit, to 2.9 billion yen ($27.4 million); an 86.8% decline in business profit, to 2.3 billion yen ($21.7 million); and a 20.6% decline in sales revenue, to 247.1 billion yen ($2.33 billion). (The calculations are equivalent to operating income under accounting principles generally accepted in Japan and calculated as sales revenue less the sum of cost of sales and selling, general and administrative expenses, Yokohama says.)

Yokohama said its Multiple Business and ATG (Alliance Tire Group, off-highway tires) segments offset the red ink incurred in the Tires segment amid the COVID-19 pandemic. The company said it “tackled successful improvements throughout its operations for coping with the pandemic-related business downturn,” according to its first-half financial report.

The company said sales revenue and business profit in the Tires segment declined from the same period of the previous year. This can be seen in the downturn in unit sales volume, an upturn in unit costs associated with reduced production volume, and inventory-disposal costs associated with a product recall in North America in the first quarter, Yokohama said.

Sales revenue also declined in OE tires in Japan and overseas with COVID-19 depressing vehicle demand in Japan and automakers adjusting their production worldwide, Yokohama said. Sales revenue also declined in replacement tires for Yokohama, driven by warmer-than-average winter temperatures at the beginning of the year in Japan, which lowered demand for winter tires, and general weakness in Japanese consumer spending, aggravated by COVID-19.

Yokohama said the COVID-19 pandemic affected business severely in every sector especially in its Multiple Business segment. Sales revenue declined in Yokohama’s high-pressure hoses business as well as in industrial materials, Hamatite-brand sealants and commercial aircraft fixtures and components.

Yokohama said it has revised its full-year fiscal projections for 2020 that it announced in February. The revised projections consider the effects of the COVID-19 pandemic and call for profit attributable to owners of its parent company to decline 70.2%, to 12.5 billion yen ($118 million), on a 65.8% decline in operating profit, to 20 billion yen ($188.8 million); a 58.1% decline in business profit, to 21 billion yen ($198 million); and a 17.6% decline in sales revenue, to 536 billion yen ($5.06 billion). Compared with Yokohama’s earlier projections, current projections are 67.1% lower for profit attributable to owners of its parent company, 63.3% lower for operating profit, 61.8% lower for business profit, and 18.8% lower for sales revenue.

You May Also Like

Bridgestone Creates New Philanthropic Position

Wade Munday has been hired to handle corporate philanthropy and social impact at Bridgestone.

Bridgestone named Wade Munday as its new director of corporate philanthropy and social impact. In this newly created position, he will be responsible for advancing and directing the strategy and execution of philanthropic and social programs at Bridgestone that align with the company’s mission and values, including sustainability, DE&I and stakeholder engagement. Munday will manage the operations of the Bridgestone Americas trust fund, corporate philanthropy, and workplace giving.

Hunter Engineering, Dealerlogix Announce Integration

The partnership between companies was announced during NADA 2023.

Bridgestone Americas Releases 2022 DE&I Annual Report

The 2022 DE&I Annual Report outlines improvements Bridgestone has made in its three DE&I focus areas.

CEAT Receives Lighthouse Certification from World Economic Forum

The certification is given to manufacturers that use Industry 4.0 technologies.

CEAT-receives-Lighthouse-certification-
Nokian Tyres Holds Innovation Challenge Finals

Sustainability at the top of mind for Nokian Tyres during its innovation challenge.

Nokian-Tyres-1400

Other Posts

Apollo Tyres Receives ISO Certification for Sustainability

Apollo Tyres underwent a three-stage assessment for the certification.

apollo-chennai-india-plant-sustainability
Discount Tire Announces ‘Defending Daytona’

The series will highlight Austin Cindric, driver of the No. 2 Discount Tire Ford Mustang, as he prepares to defend his title at the Daytona 500.

Discount Tire Defending Daytona
Hunter’s BL Series Bench Lathes Now Connects with HunterNet 2

With the new connectivity, shop owners and managers will be able to view before and after-cut results for rotors and drums online.

brake-bl-bench-lathe-hunter-engineering
GRI Receives US DOT Certification for Safety

GRI tires will now have a DOT code embossed on their sidewalls.

DOT-CERTIFICATION-GRI-Tires