Osaka, Japan --Toyo Tire & Rubber Co. Ltd. is forecasting improved earnings and sales for its fiscal 2006 half-year, based on double-digit sales growth in the first quarter and a greater-than-expected depreciation of the yen vs. other global currencies.
Toyo's sales for the three months ended June 30 were up 13.9 percent over the same period a year ago to $649.5 million on strong improvements in the tyres and chemicals/industrial products segments.
Toyo reported operating income of nearly $29 million and net earnings of $6.5 million; this is first time Toyo has reported quarterly results, so there are no earnings comparisons. The operating income/sales ratio of 4.5 percent, however, was almost identical to that reported for fiscal 2005.
The tyre division reported 16-percent sales growth to $425.5 million, with operating income of $25.5 million.
Sales in North America were $183.5 million, with operating earnings of $3.5 million.
For the six months to Sept. 30, Toyo is projecting pre-tax earnings of about $48 million, or more than double the value it forecast only three months ago. Net income is forecast to jump 30 percent to nearly $12 million.