Yokohama Rubber Co. Ltd. recorded record sales and earnings during the first three quarters of 2024.
The Tokyo, Japan-based company posted $5 billion in sales, up 13.1% from the same period in 2023, and achieved $5502 million in operating profit, a year-over-year gain of 63.8%.
“The strong year-on-year growth in group business profit reflects successful efforts to increase sales volume, raise product prices and improve product mix,” supplemented by a “full contribution” from the firm’s Yokohama TWS business, according to Yokohama officials.
Third quarter view
Yokohama also “achieved record sales revenue and business profit” during the third quarter of 2024.
Globally, Yokohama’s overall replacement tire sales volume increased by 106%, while the company’s total original equipment sales volume grew by 112%, both on a year-over-year basis.
Replacement channel gains were driven by strong sales in Europe and Asia and “steady sales to major customers in North America, despite weak overall demand.”
OE increases were driven by growth in new car sales in Japan and expanded vehicle sales in China.
Also during the third quarter, Yokohama’s off-highway business achieved a 110% increase in the replacement channel and a 72% increase in OE volume, including increased replacement sales in the ag tire category “despite a difficult market environment.”
However, OE ag tire sales declined “more than expected” on a year-over-year basis.
The company reported “strong” OTR tire sales, especially in the construction tire category.
Looking ahead
Yokohama says that “optimization” of its manufacturing footprint “in the world will be considered on a constant basis to ensure sustainable growth in a changing competitive environment.”
The company also announced the closure of its plant in Hadera, Israel, which had been owned for many years by Alliance Tire Group prior to Yokohama’s ownership. (In 2021, Alliance Tire Americas Inc. became Yokohama Off-Highway Tires America Inc.)
According to Yokohama officials, the “competitiveness” of the Hadera plant “has been lost.”
Earlier this summer, Yokohama announced it will acquire Goodyear Tire & Rubber Co.’s OTR tire business unit in a deal that is expected to close in early-2025.
