Toyo in red for 1st half on 25% lower sales

ERJ staff report (TB)

Osaka, Japan -- Toyo Tire & Rubber Co. Ltd. reported operating and net losses of $14 million and $22 million, respectively, for the first half of its fiscal year as sales plunged 25 percent from a year ago.

The losses are about half the size Toyo projected in May - due to better-than-anticipated results of its cost-containment measures and the depreciating Japanese yen - but the operating loss compares unfavorably with operating earnings a year ago, while the net loss is slightly better than a net loss reported a year ago.

Sales fell to $1.44 billion.

Toyo did not issue projections for the full year, ending March 31, 2010.

Toyo's tyre business unit reported 21.6-percent lower sales of $1.07 billion primarily on reduced sales in markets outside of Japan. Toyo did not disclose sales by region but said demand in North America and Europe was affected by delays in the economic recovery while markets in China and Latin America showed steady increases in sales volume.

Sales by Toyo's DiverTech and other business units fell 33.2 percent on lower demand for vehicle components.

From Tire Business (A Crain publication)