JAPANESE firm Yokohama Rubber says it is deferring its 1 trillion yen sales target to 2019 or 2020, which it was targeting to achieve in 2017, its centennial year.
In the three-year plan ending 2014, the firm is targeting to achieve sales of 630 billion yen, income of 60 billion yen and return on sales of 9.5%. Started in 2006, the plan comprises four three-year phases and is targeting annual net sales of 1 trillion yen,operating income of 100 billion yen and return on sales of 10%.
Now, due to changes in the operating environment Yokohama says it will not achieve its sales target but expects to achieve its operating income by 2017.
In Japan, the persistently strong yen weighs heavily on exports and the scheduled increases in the national
sales tax could dampen consumption but demand associated with the rebuilding effort in areas affected by the March 2011 earthquake and tsunami will stimulate GDP growth.
Tyres are the focus of Yokohama’s growth plans and company expects to expand its global supply capacity.
For the period ended 31 December 2011, the firm posted a 36.7% higher income and 1.9% higher sales due to strongerthan-expected sales of replacement tyres in Japan and overseas and higher sales of winter tyres.
In other news, the company has established a technical centre as the base for testing and evaluating raw materials on the premises of the tyre plant of Hangzhou Yokohama Tire in Zhejiang province.
The 250 million yen centre, which includes evaluation/analysis machines and analytical instrument, is Yokohama Rubber’s first overseas base for testing raw materials for tyres and industrial products. The centre will also advise Chinese makers of raw materials on quality control and quality assurance through
auditing.
Advantages include easy confirmation of workability of raw materials at the adjacent tyre plant. (PRA)
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