Osaka, Japan -- Toyo Tire & Rubber Co. Ltd's net income between 1 April and 30 Sept 2007, has dropped by 92.6 percent to ¥637 million (€3.9 million), as a result of compliance problems with its urethane-based heat-resistant building construction materials.
On 9 Nov Toyo reported safety problems with the materials and as a result has had to withdraw them from the market. The company said in a 13 Nov statement that the cost of replacing the materials would total around ¥4035 million.
The company's operating income increased by 33.7 percent to ¥6988 million year-on-year.
Sales of original equipment tyres and replacement tyres for the domestic market, despite less car models being equipped with Toyo's products, managed to maintain the same levels as those achieved in the first half of fiscal 2006. This was thanks to increased sales of high-value-added products, said Toyo, in the statement.
Toyo's overall net sales increased by ¥24 017 million to ¥169 778 million and its operating income increased by ¥1155 million to ¥7086 million, compared to the same period in 2007.
Overseas sales, centred mainly on the North American and European markets, surpassed the levels achieved in the same period of the previous fiscal year, mainly thanks to the continued trend of a weak yen, said the company.
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Results from Toyo