Toyo profit up in 2012, further growth in 2013

ERJ staff report (LMH)

Osaka, Japan – Toyo Tyre & Rubber Co. Ltd has published its results for 2012 year, a shortened nine-month period as the company moves to a January-December fiscal year.

During the 1 April - 31 Dec 2012 period, Toyo’s net sales were ¥291.1 billion (Euro 2.4 billion). Sales in 2011 were ¥320.6 billion though this covered a 12 month period. Operating income in 2012 was ¥15.7 billion, while net income reached ¥13.2 billion, up from ¥6.7 billion in the 12-month fiscal 2011.

In the tire business, Toyo posted net sales of ¥228.7 billion and operating income of ¥13 billion. The company reported that new vehicle sales increased, as production rebounded following the March 2011 earthquake in Japan. Production volume of domestic cars has increased and this impacted Toyo with both volume and net sales favourable, the tire maker said.

In the replacement market, volume and sales were favourable for passenger vehicle tires, partly due to an increase in added-value products such as fuel-efficient tires and strong sales of winter tires due to snow fall.

Toyo noted that in North America, sales remained stable in a “sluggish economy”. In Europe, the Japanese tire maker was affected by the economic downturn of the overall market though the company said sales remained the same level as 2011. In south-east Asia, volume and sales were “favourable”.

In its DiverTech business, total sales were ¥62.3 billion and operating income was ¥2.2 billion. Toyo said sales of anti-vibration rubber and seat cushions for automobiles had recovered from the impact of the 2011 earthquake, but due to a drop in production by Japanese carmakers in China – likely due to the ongoing political tensions between the two countries – sales remained the same level as last year. Toyo added that sales of standard anti-vibration rubber in the industrial materials segment were down.

For 2013, Toyo predicts net sales of ¥360 billion, with operating income of ¥22 billion and net income of ¥12 billion.

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News release from Toyo Tire & Rubber