Yokohama, the Japanese tire maker said on Monday it will increase prices by up to 8% on all of its consumer tires sold in the United States.
The increase will go into effect March 1, with some in-line adjustments announced at a later date.
The company said its net sales from April to September 2011, the first six months of the present fiscal term, increased 8.4%, 19.9 billion, over the same period of the previous fiscal year, to 258.2 billion yen.
However, operating income declined 8.3% from the same period of the previous year, to 7.6 billion yen, on account of rising raw material costs, the appreciation of the yen, and an increase in selling, general and administrative expenses.
Following the report of Japan’s first annual trade deficit in more than 30 years, the country’s major manufacturers have been delivering earnings results soaked in red ink.
The strong yen made Japanese exports less competitive as economic troubles in Europe and the US weakened their own currencies and the demand in those crucial markets.
The dollar has been trading at about 77 yen lately, down from about 83 yen a year ago.