The Yokohama Rubber Co., Ltd., announced today its business and financial results for the first three quarters (January to September) of fiscal 2023. Profit attributable to owners of parent increased 33.9% over the same period of the previous year, to 44.6 billion yen, on a 15.5% increase in operating profit, to 52.4 billion yen; a 6.7% increase in business profit,* to 49.2 billion yen; and a 12.5% increase in sales revenue, to 692.5 billion yen.
* Basically 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.
The figures for profit attributable to owners of parent, business profit, and sales revenue were record-high totals for nine-month fiscal performance at Yokohama Rubber. In addition, Yokohama Rubber posted its highest-ever totals for profit attributable to owners of parent, operating profit, business profit, and sales revenue in the July-to-September quarter. Management has raised the full-year fiscal projections, meanwhile, that it announced in May 2023. It has raised the projection for profit attributable to owners of parent 9.6%, to 62.5 billion yen; the projection for operating profit 6.3%, to 92.5 billion yen; and the projection for business profit 6.5%, to 90.0 billion yen. Management abides by its projection of 1 trillion yen for full-year sales revenue.
Sales revenue and business profit in Yokohama Rubber’s Tires segment increased over the same period of the previous year. In original equipment (OE) tires, sales revenue increased as strong sales in Japan and in North America more than offset the adverse effect of weak business for Japanese automakers in China. Sales revenue also increased in replacement tires. Yokohama Rubber’s replacement business in Japan benefited from early-year snowfalls and resultant vigor in sales of winter tires, and the company posted sales growth in replacement tires in China and in other Asian markets.
Yokohama Rubber posted a large increase in sales revenue in off-highway tires for agricultural machinery, industrial machinery, and other applications. Sales declined in the legacy business of YOHT (Yokohama Off-Highway Tires), which the company handled as the ATG (Alliance Tire Group) segment prior to 2022. That decline reflected adverse market conditions in Europe and in North America. The overall sales increase in off-highway tires reflected the acquisition, completed in May 2023, of the Swedish company Trelleborg Wheel Systems Holding AB. That company has operated since the acquisition as Y-TWS. Its July-to-September business profit on a nonconsolidated basis and before accounting for purchase price allocation was the highest ever. That reflected successful efforts to maintain the company’s price positioning as a premium brand and a sharp decline in logistics expenses.
Sales revenue and business profit increased over the same period of the previous year in Yokohama Rubber’s MB (Multiple Business) segment. In hoses and couplings, sales revenue increased. Business in hoses and couplings with US automakers suffered from the strikes in the United States that occurred during the quarter, but expanded business with Japanese automakers more than offset that setback. Sales revenue also increased in industrial materials. Yokohama Rubber registered strong sales gains in conveyor belts in Japan and overseas, posted a strong sales performance in marine products, and achieved sales growth in aircraft fixtures and components on the strength of vigorous business in replacement products for commercial aircraft.