Yokohama’s tyre business’ Q12020 earnings dent due to COVID 19 impact

  • By 0
  • May 23, 2020
Yokohama’s tyre business’ Q12020 earnings dent due to COVID 19 impact

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.

 

Adami Trasporti Relies On Continental Tyres For A Greener Fleet With Lower TCO

Adami Trasporti Relies On Continental Tyres For A Greener Fleet With Lower TCO

Continental has demonstrated its role as a key partner for sustainable fleet management through its collaboration with Italian transport company Adami Trasporti. Since 2023, Continental has supplied its Conti Hybrid series tyres – Conti Hybrid HS5, Conti Hybrid HD5 and Conti Hybrid HT3 – to Adami's fleet, leading to significant reductions in the company's total operating costs and a marked improvement in its environmental performance. This partnership underscores how strategic tyre selection is central to modern logistics.

For Adami Trasporti, a family-owned business specialising in food transport for over four generations, operational integrity is paramount. The company operates a fleet of 200 modern tanks and tank containers for sensitive liquid goods like fruit juice, wine and cooking oil, requiring adherence to the highest hygiene standards and strict EU environmental regulations. To meet these demands, the Verona-based firm, with additional locations in Italy, Slovakia and Germany, invests heavily in technological innovations, from real-time data monitoring to modern vehicles designed for minimal emissions.

Within this comprehensive sustainability strategy, the choice of tyres has proven to be a critical factor. While tyres themselves account for a small fraction of direct operating costs, their influence on fuel consumption and CO2 emissions can affect up to 31 percent of a fleet's total costs. Continental is actively informing the logistics industry that a shift in focus from mere tyre mileage to rolling resistance is essential. Tyres with optimised rolling resistance, such as the Conti Hybrid models, serve as a direct lever for saving fuel, lowering costs and reducing a fleet's carbon footprint.

This aligns perfectly with Adami Trasporti’s concrete goals for greater sustainability. The company complements its use of Continental’s tyres with other forward-thinking initiatives, most notably the integration of LNG-powered vehicles that cut nitrogen oxide emissions by 70 percent. Through this multi-pronged approach, in which Continental’s tyre technology plays a fundamental role, Adami Trasporti positions itself as an industry pioneer. Together, the companies are actively contributing to lower CO2 emissions across the European transport sector.

Stefano Adami, owner at Adami Trasporti, said, “With the rolling resistance-optimised tyres, we are reducing our CO2 emissions, saving fuel and benefiting from high mileage at the same time. The fuel savings of one and a half to two percent are crucial for us, as consumption has a direct impact on our operating costs. The service and support offerings increase operational reliability of our vehicles and enable us to offer consistent and punctual services throughout Europe.”

Metso Redefines Thickener Maintenance With Landmark Split Geared Ring

Metso Redefines Thickener Maintenance With Landmark Split Geared Ring

Metso has introduced its largest split geared ring model, the SCDH4500, a significant innovation designed to transform thickener maintenance in the mining sector. This new model directly confronts the difficulties of traditional full slew bearing replacements through its advanced two-piece split design.

By enabling installation to be completed up to 50 percent faster and minimising the extent of system disassembly required, the solution substantially reduces operational downtime. Furthermore, it enhances worksite safety by removing the necessity for large cranes and the associated risks of suspended loads. The resulting benefits for customers include considerable cost savings from lower labour and equipment hire expenses, as well as a reduction in lost production.

This product launch is a key component of Metso's wider strategy to enhance its thickener portfolio and bolster its aftermarket services. The SCDH4500 is engineered for seamless integration with existing SCD drive geometries, ensuring compatibility and dependable performance in even the most demanding applications. The company’s comprehensive thickening and clarifying portfolio is built on advanced engineering and a focus on sustainable outcomes, which support improved water recovery, lower chemical usage and safer operations.

Andrew McIntosh, Product Director, Thickening Services, Metso, said, “The innovative two-piece split design allows faster installation without requiring extensive system disassembly. This not only minimises operational disruptions but also enhances safety by eliminating the need for large cranes and suspended loads. Additionally, the SCDH4500 seamlessly integrates with existing SCD drive geometries, ensuring reliability in high-torque applications.”

Apollo Tyres' QC Team Secures Podium Position At 2025 Supplier SAMRAT Award

Apollo Tyres' QC Team Secures Podium Position At 2025 Supplier SAMRAT Award

The YOKOTEN QC Team from Apollo Tyres' Limda Bias Plant has achieved a top honour by securing a podium finish at the prestigious Ashok Leyland Supplier SAMRAT Award Competition 2025. This victory is considered a significant milestone for the company, emerging from a field of 78 competing supplier teams.

Throughout the multi-stage event, the team successfully demonstrated its quality control methodologies and a deep-rooted culture of continuous improvement. The competition involved rigorous evaluations, detailed presentations and a final assessment before a jury. The panel reportedly commended the team's systematic problem-solving techniques and the overall robustness of its quality assurance practices.

Apollo Tyres has stated that such customer recognition is a source of immense pride. The achievement is seen as a direct reflection of the organisation's unwavering commitment to delivering superior quality, value and customer satisfaction. This accolade reinforces the company's ongoing efforts to consistently raise performance standards across its operations.

Eurogrip Accelerates International Push With Dual Motor Show Presence

Eurogrip Accelerates International Push With Dual Motor Show Presence

Eurogrip Tyres, a leading tyre brand from TVS Srichakra Ltd., is aggressively pursuing international growth, as evidenced by its recent participation in two major motor shows. The brand showcased its premium portfolio at the Expo Moto International Trade Show in Mexico City and the Colombo Motor Show in Sri Lanka, signalling a strategic push into the promising Latin American and South Asian markets.

These events provided a dynamic platform for the company to present its advanced research and technological capabilities directly to a global audience of customers, dealers and distributors. In Mexico, the display featured a comprehensive array of two-wheeler tyres, including popular patterns like the Roadhound and Trailhound STR. Simultaneously, at the Colombo show, the spotlight was on the high-performance Protorq Extreme radial tyre, complemented by other world-class products such as the Terrabite DB+ and Bee Sport, reinforcing the brand's diverse and innovative offerings.

T K Ravi, Chief Operating Officer, TVS Srichakra Ltd., said, “As we continue to build Eurogrip as a leading global 2-wheeler tyre specialist, we remain committed to earning customer trust through products that deliver performance, reliability and value. Mexico and Sri Lanka are key markets for us that help strengthen our brand presence in Latin American and South Asian markets. These international events enable us to strengthen our engagement with customers and partners – we get to give them a first-hand experience of our products and showcase the world-class research and development that goes into the making of each product.”