Toyo Tires posts record sales but earnings drop

Tokyo – Toyo Tire Corp. has reported record consolidated sales of Yen435.3 billion (€2,430 million) for the first nine months of fiscal 2025, up 3.5% year-on-year, helped by higher domestic volumes.

Operating income for the nine months to end of September fell 5.5% year-on-year to Yen72.1 billion, weighed down by US tariff impact, higher costs and foreign exchange losses the Japanese group reported 12 Nov.

The dip mainly reflects weaker third quarter results, which saw group earnings fall by Yen4.7 billion to Yen23.9 billion, as both tires and automotive parts segments posted declines.

Sales for the three months to end of September grew 3.2% to Yen152 billion, Toyo reported.

The tire business, which accounted for more than 90% of sales, generated Yen400.3 billion in revenue during the first nine months of the year, up 3.4% year-on-year.

Segment operating income, however, decreased 6.0% to Yen70.4 billion, reflecting the impact of higher material and logistics costs as well as US tariffs.

The automotive parts business reported stronger results, with sales rising 4.7% to Yen35.0 billion and operating income surging 24.3% to Yen1.7 billion, supported by cost improvements and steady demand from automakers.

For the full year, Toyo Tires raised its estimated operating income to Yen95.0 billion, up Yen5 billion from its previous forecast in August.

Despite the quarterly earnings dip, Toyo noted that net sales reached a record high for the third quarter, reflecting continued steady demand for its tire products.

Toyo also provided an update on its five-year growth strategy, which concludes this year.

The group said it had met its key targets, including achieving operating income above Yen60 billion, with the figure expected to reach Yen95 billion in 2025.

Toyo also expects to post an operating margin of 16.1%, well above its 14% target.

The ratio of 'priority products' rose to just under 69% in 2024, exceeding the original 55% goal, supported by a review of sales structures in Japan and Europe and the start of mass production in Serbia.

Toyo will unveil its next five-year strategy in February, when it is expected to outline new capacity expansion plans, including a potential greenfield facility.

The new plan, Toyo said, will also focus on ramping up production of large-diameter LTR tires in the US and on upgrading aging equipment.