Toyo posts 60% earnings hike on higher sales, lower costs
20 Nov 2023
Tire maker's revenues buoyed by North America sales, as volumes grow 8% in region
Hyogo, Japan – Toyo Tire Corp. has seen a significant jump in both third quarter and nine-month results, helped by higher sales in North America and lower logistics costs.
Over the three months to end of September, Toyo reported a 43% year-on-year increase in operating income to Yen23.6 billion (€144.9 million), on 13% higher sales of Yen143.7 billion, Toyo announced 14 Nov.
For the first nine months of the year, sales grew nearly 17% year-on-year to Yen409 billion, as operating income jumped 60% to Yen50.3 billion.
The Japanese group linked the “record high” sales for the nine-month period to growing tire volumes in North America.
The number of units sold in North America grew 8% year-on-year during the period, offsetting declines in all other markets, including Japan, Europe and south east Asia.
Meanwhile, Toyo said operating income was buoyed by external factors such as lower ocean freight costs and favourable forex, which contributed Yen21.4 billion and Yen8.4 billion respectively.
For the first nine months, Toyo’s ‘tire business unit’ posted net sales of Yen374 billion, up 17% year-on-year, while operating income increased 49% to Yen50.1 billion.
Meanwhile, Toyo’s automotive parts returned to profit, reporting an operating income of Yen40 million, compared to a loss of Yen2.3 billion for the first nine months of 2022.
The automotive parts segment also saw revenue increase 16% year-on-year to Yen35 billion, according to Toyo.
In view of the strong results, Toyo revised its full-year earnings outlook to Yen65 billion, up 8% from an earlier estimate of Yen60 billion and 47% from the Yen44 billion achived last year.