Sales down at Toyo after year of uncertainty

Osaka, Japan - Toyo Tire & Rubber Co. has reported net sales of 70.3 billion yen (Euro 618 million), down by 2.5 percent, for the 2011 fiscal year ended 30 June.

Operating income for the year was 3.1 billion yen, an increase of 542 million yen, up 20.8 percent compared to the same period in fiscal 2010.

Net income was 853 million yen, an increase of 110 million yen, up by 14.8 percent compared to the same period in fiscal 2010.

Toyo said the business environment in the first quarter continued to be severe, with drastic appreciation of the yen, which surpassed the anticipated exchange rate and the steep increase in costs of raw materials, particularly natural rubber.

The company also said the temporary stop in operations by car manufacturers due to the 11 March earthquake in the country also had a negative impact. Toyo said it had taken steps to improve profitability, citing early recovery of operations at its Sendai plant and implementing price increases at each plant.

In terms of business units, the tyre business posted net sales of 53.7 billion yen and operating income of 2.9 billion yen. Both sales volumes and net sales fell substantially below the same period last year due to the effects of the earthquake, Toyo said.

The DiverTech business unit, which makes rubber products for the transport and industrial sector, saw sales of 16.5 billion yen and operating profits of 127 million yen.

Toyo said the forecast for the current fiscal year remains unchanged because of continuing market uncertainties, such as fluctuations in the price of raw materials and currency that could potentially affect the company's future business performance.

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Financial Results from Toyo Tire & Rubber