Yokohama Rubber Co ( (YORUF) ) has released its Q4 earnings. Here is a breakdown of the information Yokohama Rubber Co presented to its investors.
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Yokohama Rubber Co., Ltd. is a prominent player in the tire and rubber industry, primarily known for manufacturing tires and other rubber products for a variety of applications, including automotive, industrial, and aerospace sectors. The company is listed on the Tokyo Stock Exchange under the securities code 5101.
In its latest earnings report for the fiscal year ended December 31, 2024, Yokohama Rubber posted impressive growth across key financial metrics. The company reported a sales revenue increase of 11.1% year-on-year, reaching ¥1,094,746 million, alongside a substantial rise in business profit by 35.6%. Operating profit also saw an increase of 18.7%, while profit attributable to owners of the parent grew by 11.4% to ¥74,919 million.
The tire segment was a significant contributor to this performance, accounting for 89.6% of consolidated sales revenue with a 12.1% increase from the previous year. The company’s strategic focus on high-value-added tires and expansion in overseas markets, particularly in the off-highway tire business, played a crucial role in driving sales. The acquisition of Trelleborg Wheel Systems Holding AB in 2023 also added a full year’s contribution, enhancing the company’s market position.
Yokohama Rubber’s consolidated financial position strengthened with total assets rising to ¥1,735,544 million, a significant increase reflecting higher trade receivables and property investments. The company’s equity attributable to owners of the parent improved, bolstered by recorded profits and a higher equity ratio. Cash flows from operating activities provided a healthy inflow, supporting ongoing investments and strategic initiatives.
Looking ahead, Yokohama Rubber remains optimistic about fiscal 2025, projecting further growth in sales revenue and business profit under its medium-term management plan, Yokohama Transformation 2026. The company aims to enhance its competitive edge through innovation, market expansion, and strategic acquisitions, while navigating potential challenges posed by global economic conditions and currency fluctuations.
