Yokohama improves forecasts

Yokohama Rubber reported record financial results for the first half of 2024 and revised its targets for the period through 2026.

In the first half of 2024, the company's revenue grew by 18.5% compared to the same period in 2023 and reached 525.3 billion yen (3.56 billion dollars). Operating profit increased by 99.6% to 56.3 billion yen (380 million dollars), and net profit - by 68.3%, to 46.6 billion yen (320 million dollars). All these indicators were record-breaking for the Japanese tire manufacturer, which has a plant, including in Russia.

Yokohama notes that the results for the first half of the year in the tire segment were much higher than expected, and the non-tire products division also showed good performance, and profitability was further improved due to a reduction in raw material and logistics costs, as well as the weakening of the yen against other key currencies.

Following the results of January-June, Yokohama improved its forecast for the entire 2024 year, and the expected revenue was increased by 4.2% to 1.105 trillion won (7.5 billion dollars), and net profit - by 5.4%, to 78.5 billion yen (530 million dollars).

The company also revised its financial targets for 2024-2026. Initially, Yokohama forecasted that in 2026, sales would reach 1.15 billion yen (7.8 billion dollars), but considering the results of the half-year, the technological transformation of the company and the expected benefits from the acquisition of Goodyear's business in the segment of tires for mining and construction equipment, it was decided to increase this figure to 1.25 trillion yen (8.5 billion dollars).