Yokohama Rubber Co. Ltd. posted sales of $3.58 billion and operating profit of $384 million during the first half of 2024.
The sales total represents a year-over-year gain of 18.5%.
Yokohama’s first half operating profit was an increase of 99.6% over the same period in 2023.
In addition, performance of Yokohama’s tire division “greatly exceeded management’s projections,”achieving a profit margin of 12.7%, according to company officials.
Profitability also benefited from “declines in raw material costs and logistics expenses and from the weakening of the yen against other principal currencies.”
Regional view
In North America, Yokohama experienced year-over-year replacement tire unit sales increase of 95% during the first half, as well as a 121% year-over-year unit sales increase in the original equipment channel.
The Tokyo, Japan-based company experienced the biggest year-over-year replacement tire unit sales gain in Asia – up 133% versus the first half of 2023.
During the first half of 2024, Japan made up 37% of Yokohama’s sales, with North America in second place at 20%. China made up 14%, the rest of Asia made up 10%, Europe comprised 8%, India made up 4% and other countries and regions made up the remainder.
Big acquisition
The biggest announcement made by Yokohama during the first half was its intent to acquire Goodyear Tire & Rubber Co.’s OTR tire business unit for $905 million in cash.
The deal is subject to regulatory approvals and is expected to close by early-2025.
Yokohama says its acquisition of Goodyear's OTR business will contribute to the ongoing expansion of its off-highway tire business.
Yokohama says it is already “well-positioned” in that global market for agriculture and forestry tires, which it estimates accounts for about 40% of the total off-highway tire market.
“The acquisition will serve to complement Yokohama Rubber’s OHT product range in non-agricultural applications by bringing in the strong brand power of Goodyear’s OTR business into the group,” said Yokohama.
As part of the acquisition, Yokohama will acquire all shares of Nippon Giant Tire Co. Ltd., which operates Goodyear’s OTR tire plant in Japan, and Goodyear Earthmover Pty. Ltd. In Australia, plus “certain OTR assets at the other plants and facilities around the world.”
