Toyo Tires earnings fall on higher costs

Tokyo – Toyo Tires has reported a double-digit decline in earnings (operating income) for the first quarter of 2025, due mainly to higher costs.

The Japanese group posted a 13.7% year-on-year decrease in earnings to Yen22.4 billion (€136 million), on 6.2% higher sales of Yen135.5 billion, Toyo said 13 May.

Despite the ‘record high’ revenue for a first quarter, Toyo said earnings fell due to higher costs, including the rising raw materials prices, production costs and SG&A expenses.

Japan, in particular, performed weakly, reporting a 35.5% decline in first quarter earnings to Yen14 billion.

Meanwhile North America and Europe recorded strong earnings gains of 24% and 93% year-over-year to Yen5.3 billion and Yen4.1 billion respectively.

The ‘tire business unit’ posted net sales of Yen123 billion, up 6.2% year-on-year, while earnings fell 14.6% to Yen22 billion.

The ‘automotive parts business unit’ also posted a 7% year-on-year increase in sales to Yen11.7 billion, while earnings rose 62% year-on-year to Yen509 million.