Toyo returns to black, boosts fiscal forecast

ERJ staff report (TB)

Osaka, Japan -- Toyo Tire & Rubber Co. Ltd. returned to the black in its first quarter, ended June 30, on 15.7-percent higher sales, prompting management to revise the firm's fiscal 2010 earnings upward.

The net income was a modest $8 million (1 percent of sales), while operating income showed a more measurable improvement to $283.3 million (3.6 percent of sales). Sales hit $782.6 million.

Management in turn boosted the operating and net income forecasts for the year by 20 and 35 percent, respectively, over the previous outlook issued in mid-May.

Both the tyres and DiverTech industrial products units returned to the black on an operating basis, Toyo said, with the divisions' sales rising 12.6 and 25.4 percent, respectively.

The tyre Division posted an operating income of $6.5 million vs. a similar-sized loss a year ago, while revenue rose to $478.2 million as both OE and replacement sales grew, both domestically and in foreign markets, Toyo said. The tyre maker's sales in North America jumped 16 percent in the period to $252 million.

From Tire Business (A Crain publication)