Feb 23, 2017
Yokohama Rubber company, a member of the three largest Japanese tire manufacturer, predicts an increase in operating profit this year by 12%, despite the rapid rise in prices for natural rubber and other raw materials.
Rubber futures on the Tokyo Commodity Exchange (TOCOM) last month reached a five-year high, largely due to speculators from China.
Yokohama Rubber expects that the operating profit of the company for the year to rise by 12% - up to $ 419,870,000.. However, as explained General Manager Yokohama Rubber Gotha Matsuo (Gota Matsuo), high prices for natural rubber and other raw materials can reduce the operating profit to 212 million. $. To minimize this effect, the company plans to offset the increase in raw material costs due to higher prices for their products and the rise in sales of tires for agricultural and industrial machinery.
Since April, Yokohama Rubber is already going to 7% increase in the prices of their products on the US market. With regard to a possible rise in prices for the tire brand in Japan, Goth Matsuo said that the company will be pre-analyze the impact of this decision on their competitiveness.
In 2016, operating income decreased by Yokohama Rubber 22%, partly due to low prices on brand tires and unfavorable exchange rate of the yen against the US dollar.