Yokohama Rubber Co. Ltd. says its losses in the fiscal year ended March 31, 2009, will be smaller than the projections announced on March 24, 2009 (see "Yokohama lowers projections a second time," March 24, on www.moderntiredealer.com).
The company's management now projects the following:
* a consolidated net loss of 5.5 billion yen, down from a consolidated net profit of 21.1 billion yen in the previous fiscal year;
* consolidated net sales of 517.0 billion, down 6.2% from the previous year; and
* consolidated operating income of 13 billion yen, down 60.7% from the previous year.
Here's how the revised numbers compare to the March 24 projections: , operating income is up 13.0%, and the net loss is 31.3% less. Projected net sales are down only 0.6%.
"Yokohama attributes the upward revision in its earnings projections to better-than-expected progress in reducing selling expenses and to smaller-than-expected losses on foreign currency denominated assets," says the company.
"The smaller losses on foreign currency denominated assets are attributable to the weaker-than-expected yen at fiscal year end. In preparing the earlier fiscal projections, management had assumed fiscal year-end exchange rates of 100 yen to the U.S. dollar, compared with 114 yen to the U.S. dollar at the previous fiscal year-end, and 143 yen to the euro, compared with 162 yen to the euro at the previous fiscal year-end. The actual exchange rates at fiscal year-end were 101 yen to the U.S. dollar and 144 yen to the euro."
