Toyo raises earnings forecast on strong second quarter

Hyogo, Japan – Toyo Tire Corp. has raised its full-year earnings (operating income) forecast as it ‘outperformed’ its previous estimates in the second quarter.

The group now expects earnings to come in at Yen90 billion for the financial year ending 31 Dec, up 5.9% compared to the previous forecast of Yen85 billion, but still below the 2024 earnings of Yen94 billion.

Toyo maintained its previous sales forecast at Yen585 billion – up from Yen565 billion reported last year.

Over the second quarter, ended 30 June, Toyo reported a 3.6% increase in sales to Yen283 billion while operating income grew 1.3% year-on-year to Yen48.1 billion.

Earnings, according to Toyo, reached “a record high” for the second quarter, driven chiefly by strong sales of large diameter tires in North America.

Production costs and tariff effects were more than offset by higher sales, favourable currency rates, lower freight costs and raw materials’ prices, according to Toyo.

The ‘tire business unit’ posted net sales of Yen260 billion yen, up 3.6% compared to the year before, while segment earnings rose 0.4% year-on-year to Yen47 billion.

The ‘automotive parts business unit’ also reported a 3.6% increase in sales to Yen23 billion, while earnings grew 64% to Yen421 million.

In terms of regions, all geographic areas reported growth in sales, led by Japan which posted a 7.2% higher revenue to Yen55 billion and North America, up 3.3% year-over-year at Yen192 billion.

Earnings in Japan declined 16% year-over-year to just under Yen30 billion, while North America earnings grew 21% to Yen10 billion.

“Other regions” saw a strong growth in earnings to Yen9 billion, up from Yen3.5 billion in the second quarter of 2024, on flat sales of Yen36 billion.