Toyo downgrades forecast despite positive results

Tire Business staff report

Tokyo - Toyo Tire & Rubber Co. Ltd. reported double-digit sales and earnings growth for the nine months ended 31 Dec 2007, but at the same time has revised downward slightly its earnings forecast for fiscal 2007.

For the first three quarters of the fiscal year ending 31 March, Toyo reported a 55.6-percent rise in operating income to $109.9 million (Euro 74 million) while sales grew 13 percent to $2310 million. Net income fell 18.9 percent to $59 million.

Toyo's earnings gain came primarily from the positive effects of higher sales, the firm noted in its statement.

Toyo's tyre business led the way during the period, reporting 65.9-percent higher operating income of $105 million on 17.4-percent higher sales of $1650 million.

The Tokyo-based tyre maker's business in North America jumped 23.2 percent to $744.3 million, while operating earnings rose more than fivefold to $34.9 million, for a 4.7-percent earnings ratio.

For the year, Toyo eased back its operating income forecast by about 4.5 percent but still anticipates pre-tax earnings to exceed those of 2006 by more than 17 percent. The sales forecast was increased by 2 percent to $3000 million.

From Tire Business (A Crain publication)