By Alex Kapadia
Yokohama Rubber has reported a massive drop in sales during the first half of the current financial year.
The Japanese tyres manufacturer posted sales of 201.1 billion yen for the first six months of its fiscal year.
The figure marks a 21.3 per cent drop compared to sales of 256.6 billion achieved during the same period the previous year.
The Tokyo-based company also suffered an interim operating loss of 2.4 billion yen, again a sharp contrast to an income of 5.6 billion yen for the same period last year.
Yokohama officials stated: “The downturn in profitability in the Tyre Group… reflected the decline in sales, declines in capacity utilization rates and the appreciation of the yen.”
The company noted that demand in its principal markets – Japan, North America and Europe – had weakened.
Slackening demand also undermined sales volume in Yokohama’s Multiple Business (diversified products) Group, which posted sales declines in high-pressure hoses, in conveyor belts, in sealants, and in aircraft products.