Tokyo - The Yokohama Rubber Co., Ltd., announced today its business and financial results for the first quarter (January to March) of fiscal 2018. Yokohama has adopted the International Financial Reporting Standards (IFRS) as of the issuance of its Yukashoken hokokusho ('Yuho,' securities report) for 2017. The IFRS presentation is in place of that formerly employed by the company based on accounting principles generally accepted in Japan. And Yokohama has restated its fiscal results for 2017 on an IFRS basis to facilitate meaningful year-on-year comparisons.
Profit attributable to owners of parent increased 18.0% over the same period of the previous year, to 9.3 billion yen. Yokohama posted an 8.3% increase in business profit (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), to 11.7 billion yen, and a 27.5% increase in operating profit, to 14.1 billion yen. Sales revenue increased 2.3%, to 149.2 billion yen, the highest sales total ever at Yokohama.
In the Tires segment, sales revenue increased overall, led by strength in the original equipment business in China and in other Asian markets outside Japan. Sales revenue declined overseas in replacement tires, reflecting surges in sales in some overseas markets in the first quarter of 2017. Those surges were in advance of impending price increases. Japanese business in replacement tires benefited from strong growth in sales of winter tires in Japan. That growth reflected a stimulus to demand from heavy winter snowfalls and an excellent market reception for the newly launched iceGUARD 6 studless snow tire.
Sales revenue increased overall in the MB (Multiple Business) segment, led by business expansion in high-pressure hoses and in industrial materials. The overall sales growth occurred despite declines in Hamatite-brand sealants and adhesives and in aircraft fixtures and components.
In the ATG segment, sales revenue increased on the strength of gains in original equipment business. This segment comprises business in tires for agricultural machinery, for industrial machinery, and for other off-highway applications, and the increase in sales revenue reflected a recovery in demand for agricultural machinery.
Yokohama abides by the full-year fiscal projections for 2018 that it announced in February. Those projections call for profit attributable to owners of parent to total 40.0 billion yen on operating profit of 60.0 billion yen, business profit of 63.0 billion yen, and sales revenue of 670.0 billion yen.
Financial Highlights (Millions of yen)
Results by Business Segment (Millions of yen)