Toyoda Gosei profits rise, expects positive trend to continue

Tokyo – Toyoda Gosei has reported a slight increase in 2022 annual profits and expects the upward development to strengthen this year.

The Japanese group saw operating income for the year ended 31 March rise by just under 1% to Yen35 billion (€237 million), on 15% higher sales of Yen952 billion.

Toyoda Gosei linked the revenue increase to higher sales mainly in the Americas and Asia, in addition to the impact of yen depreciation.

Profits rose due to increased sales, the effects of an ongoing rationalisation programme and the impact of material market on selling price, said the rubber-based parts maker.

Breaking down the regions, Japan saw a decline in profit due to an increase in fixed cost and the “rebound of temporary factor”.

Profits in Americas and Asia climbed by 13% and 15% respectively due to higher sales, comtinued the Japanese group's 28 April financial statement.

Europe and Africa reported continued losses during the year, due to production cutbacks at Toyoda Gosei’s UK subsidiary.

For this fiscal year, the group expects operating profit to rise 5% to Yen40 billion, despite a projected 3.3% dip in sales to Yen920 billion.

The increased earnings, said Toyoda Gosei, will mainly stem from savings under a rationalisation programme – despite an anticipated rise in wage costs.