Yokohama reported a decline in the sales and business profits for its tyre segment for the first quarter, ending March 2020.

The company’s tyre business’ sales declined 12.71% to 87.410 billion yen in Q12020.  It reported a net loss of 503 million yen in Q12020.

The company said the downturn in business profit reflected a decline in unit sales volume, an increase in production costs associated with reduced production volume, and inventory-adjustment costs occasioned by a tyre recall in North America.

Both domestic and international markets saw a fall in sales. “That decline reflected production adjustments necessitated by a decline in Japanese demand associated with the novel coronavirus (COVID-19) outbreak and by suspended operation at vehicle plants in overseas markets,” said Yokohama.

Sales revenue also declined in replacement tyres. Sales of winter tyres in Japan were weak on account of warmer-than-usual winter temperatures at the outset of the year, and Japanese business in replacement tyres also suffered from the adverse effect of the COVID-19 outbreak on consumer spending. Business in replacement tyres was generally sluggish in overseas markets, too.
ATG, a part of Yokohama looking into agri, industrial and OTR tyres, also had a fall in sales and profits due low demand.

ATG’s sales stood at 15.54 billion yen in Q12020,  a fall of 17%, from 18.86 billion yen in Q12019. Profit fell by 22% to 1.78 billion yen in Q12020.

The massive business disruption caused by COVID-19 will necessitate revisions in the full-year fiscal projections that Yokohama issued in February 2020. However, the full extent of that disruption is impossible to determine at this time, and the company will therefore withhold for the time being the release of revised business projections and of proposed dividends. Yokohama will release its revised business projections and proposals for dividends as soon as management secures a firm grasp of the fiscal outlook.

Several measures are under way at Yokohama to maintain a sound financial position in the face of the COVID-19 challenge. Those measures include fortifying short-term liquidity through optimal fund raising, paring cash expenditures by deferring capital spending and trimming costs, and reducing compensation for directors, officers, associate officers, and managers.

The valedictory function of the Platinum Jubilee celebrations of the Rubber Act 1947 and the Rubber Grower’s Conference was inaugurated by Minister of State for Fisheries, Animal Husbandry, Dairying and Minority Affairs, George Kurian at Mammen Mappillai Hall, Kottayam. The event also witnessed the rollout of iSNR, an eco-friendly and sustainable EUDR-compliant Indian Natural Rubber. The function was presided over by Member of the Legislative Assembly Thiruvanchur Radhakrishnan. Other guests included Vice Chairman of the Rubber Board G. Anil Kumar and Rubber Board member N. Hari.

The technical session highlighted innovations and advancements in the rubber sector. Executive Director of the Rubber Board, M. Vasanthagesan, outlined the development of a digital platform aimed at connecting growers with agencies interested in adopting rubber plantations for harvesting. Director of TRST01, Manoj Vembu, detailed India’s preparedness to implement EUDR processes for natural rubber exporters, an area of significant importance. Dr Joby Joseph provided an in-depth analysis of the socio-economic impact of rubber on the country.

Two panel discussions addressed critical themes in the industry. The first session, titled ‘Handholding Stakeholders through Schemes & Policies’, was moderated by Chairperson and Managing Director of Kerala Rubber Limited Sheela Thomas. Panellists included Tomson Francis, Vincent V.A., Binu Mathew, A.J. Jose, B. Sreekumar and Chandralekha K.

The second session, focused on ‘Sustainable Farming Practices’, was moderated by Managing Director of the Plantation Corporation of Kerala Dr James Jacob. Panellists included Dr Shaji Philip, Dr Mohammed Satik, Dr Ambily K.K., Mr Reju and Dr Phebe Joseph.

Awards were presented to organisations excelling in various categories on the ‘mRube’ platform during 2023-24. Balkrishna Industries was recognised in the tyre sector, while Rubfila International and Classic Industries and Exports were awarded in the non-tyre sector. Manimalayar Rubbers (P) won in the rubber dealer category and Lissy Rubbers received the latex processing sector award. Kavanar Latex was acknowledged in the rubber processor category.

Regional awards included Jalebasa RPS – North Tripura for the North Eastern Region and Puliyanam RPS for other areas. Loyalty awards were given to Ceyenar Associates and Soniya Rubbers, while innovation awards went to Thunchath Ezhuthachan Rubbers and Vembanadu Rubbers .

The event brought together a diverse group of stakeholders including members of the Rubber Board, growers, labourers, technical experts, policymakers and other industry representatives, underscoring its significance in the Indian rubber sector’s journey toward innovation and sustainability.

Yokohama Rubber Co., Ltd. (YRC) has confirmed the closure of its Prague plant, managed by subsidiary Yokohama TWS Czech Republic a.s., which focuses on the production and sale of cross-ply off-highway tyres (OHT) including those for agricultural machinery. Production from the facility will be redistributed across other YRC plants.

Yokohama TWS, a key subsidiary of the YRC group, is enacting measures to tackle challenges in the off-highway tyre sector. In response to market volatility and shifting customer preferences, the company is implementing a wide-reaching strategic programme aimed at enhancing efficiency, improving service delivery, and ensuring long-term competitiveness. This strategy centres on three core initiatives including increased investment in innovative, sustainable products and enhanced digitalisation to elevate customer service and the optimisation of its manufacturing footprint to bolster operational excellence and uphold a ‘local for local’ philosophy.

Under this strategy, Yokohama TWS will halt operations at the Prague facility by June 2025. The plant, part of YRC’s over 30 global manufacturing sites and in operation for over 90 years, has been hindered by inefficiencies stemming from an outdated production platform.

The company will coordinate with partner firms, suppliers and relevant stakeholders to manage the closure and will provide support to the 270 employees impacted.

YRC, a leading global producer of passenger car radial, truck and bus radial, and off-highway tyres, is headquartered in Japan. The group, already the world’s largest agricultural tyre manufacturer and second in industrial tyres, seeks to expand its OHT market share through strategic investments. The company continues to refine its manufacturing footprint to ensure sustainable profitability and future resilience. 

Bridgestone EMEA (Bridgestone) has launched the Ecopia Trailer to complement its line-up of flagship Ecopia long-haul tyre range equipped with ENLITEN technology.

The range provides decreased rolling resistance and improved wear life compared to its previous generation, thereby improving fuel efficiency and reducing total cost of ownership across Steer, Drive and Trailer axles, while also contributing to significantly lowering CO2 emissions. Bridgestone Ecopia Steer, Drive and Trailer contribute to a reduction in carbon emissions by 3.2 percent, 6 percent and 5.6 percent every km travelled while the tyre is in operation due to the substantial fuel savings. Additionally, the Ecopia Steer, Drive and Trailer tyres have greatly improved their wear, resulting in a 38.4 percent, 10.8 percent and 20.4 percent reduction in CO2 emissions per kilometre during manufacturing.

Compared to its predecessor, the range offers a reduction in rolling resistance on all axles, with the Drive axle seeing an improvement of up to 12 percent. This makes it possible to achieve the highest fuel economy performance possible, earning an A-grade EU badge. Additionally, Bridgestone Ecopia provides improved mileage on all axles, with a 40 percent increase on the Steer axle (due to the inclusion of Spiral Belt Technology), a 6 percent increase on the Drive axle, and a 10 percent increase on the Trailer axle.

Waqqas Ahmad, Commercial Sales Director, Bridgestone EMEA, said, “Bridgestone Ecopia represents the future of long-haul transport. Efficient and innovative, our flagship long-haul tyre range is engineered to help reduce fuel consumption and carbon emissions – without compromising tyre performance levels. Now with the launch of Ecopia Trailer, our partners can maximise these benefits. For both fleet operations and the OEMs we work with, the complete Bridgestone Ecopia range is here to support your decarbonisation objectives, help you meet new and upcoming sustainability regulations and, at the same time, reduce your total cost of ownership.”

Bridgestone Ecopia Trailer will be available to the European market from February 2025.

CEAT Limited announced its unaudited results for the third quarter ending 31st December 2024. On a consolidated basis, revenue rose 11.4 percent year-on-year to INR 32,999 million, with an EBITDA margin of 10.5 percent and a net profit of INR 970 crore.

Commenting on the performance, Managing Director Arnab Banerjee, said, “We witnessed strong year-on-year double-digit growth, driven by the replacement segment. While rising raw material costs impacted our margins, we progressively passed on part of the increase through price hikes in select categories during the quarter. Demand remains stable and our order book pipeline is robust across all segments. Raw material prices are expected to remain flat in Q4 and we anticipate the growth momentum to continue.”

On a standalone basis, CEAT reported revenue of INR 32,918 million, up 11.6 percent Y-o-Y with an EBITDA margin of 10.4 percent and a net profit of INR 960 million.

Commenting on the financials, Chief Financial Officer Kumar Subbiah said, “Gross margins were impacted during the quarter due to rising raw material costs. We managed to offset part of this through price increases and cost controls. Meanwhile, our capital expenditure for the quarter amounted to INR 2830 million, fully funded through internal accruals, ensuring that our debt levels remained stable.”