Yokohama Rubber posts record sales and earnings for first half of 2024
Hiratsuka, Japan—The Yokohama Rubber Co., Ltd., announced its business and financial results for the first half of fiscal 2024 (January to June 2024). Sales revenue increased 18.5% over the same period of the previous year, to \525.3 billion; business profit increased 113.4%, to \54.6 billion; operating profit increased 99.6%, to \56.3 billion; and profit attributable to owners of parent increased 68.3%, to \46.6 billion. The figures for all those items were record-high figures for first-half performance at Yokohama Rubber. Fiscal performance in Yokohama Rubber’s Tires segment greatly exceeded management’s projections, and business was also robust in Yokohama Rubber’s MB (Multiple Business) segment. Profitability benefited additionally from declines in raw material costs and logistics expenses and from the weakening of the yen against other principal currencies.
Management has raised the full-year fiscal projections that it announced in February 2024. It has raised the projection for profit attributable to owners of parent 5.4%, to \78.5 billion; the projection for operating profit 0.4%, to \116.0 billion; the projection for business profit 11.7%, to \128.5 billion; and the projection for sales revenue 4.2%, to \1105.0 billion.
The company has also upwardly revised the financial targets in its medium-term management plan Yokohama Transformation 2026 (YX2026), which was announced on February 16, 2024, and will be implemented during the three years from fiscal 2024 through fiscal 2026.
YX2026’s initial financial targets for fiscal 2026, the plan’s final year, included sales revenue of ¥1,150 billion, business profit of ¥130 billion, and a business profit margin of 11%. However, considering recent business results, the realization of “Technological and Production Transformation” that will be promoted during YX2026, and the expected contribution to earnings from the acquisition of Goodyear’s OTR business that was announced in the “Notice regarding the acquisition of The Goodyear Tire & Rubber Company’s mining & construction machinery tire business” submitted on July 22, 2024, Yokohama Rubber has upwardly revised these YX2026 financial targets, raising sales revenue to ¥1,250 billion, an increase of ¥100 billion, and business profit to ¥150 billion, an increase of ¥20 billion. The business profit margin target has been increased to 12%.
Under its current medium-term management plan YX2026, Yokohama Rubber is advancing the “exploitation” of the strengths of its existing businesses and the “exploration” of new value as it aims to complete the transformation begun under its previous medium-term plan while being mindful to not leave any negative legacies for the next generation. Under this guiding philosophy, Yokohama Rubber will resolutely implement the growth strategies established for each of its businesses as it aims to achieve “Hockey Stick Growth” during YX2026 to fiscal 2027.