By Oliver Hall
Yokohama has announced it returned to profitability in its first trading quarter of 2010.
The Japanese tyres manufacturer posted a net income of 1.6 billion yen on net sales of 117.4 billion yen for the period ending June 30, 2010, compared to a net loss of 1.8 billion yen on sales of 95.1 billion yen for the same period last year.
The results account for a recorded net income of $18 million on net sales of $1.3 billion for the first quarter.
According to Yokohama, “a strong turnaround in operating profitability” drove the company’s return to prosperity, thanks to “strong growth” in tyre unit sales.
The company stated: “Profitability improved as an upturn in capacity utilisation and progress in cutting costs more than offset the adverse effects of rising raw material costs and the appreciation of the yen.”
Tyre group sales rose 25.5%, to 92.6 billion yen. Yokohama’s unit sales in Japan increased in the replacement and original equipment markets; the company also posted unit sales gains in overseas tyre markets, led by growth in North America and Asia.