Toyo Tire reports double-digit sales, earnings growth

Osaka, Japan -- Toyo Tire & Rubber Co. Ltd. reported double-digit increases for sales and earnings for the first nine months of fiscal 2006, primarily on the strength of its tyre business.

For the period ended Dec. 31, Toyo reported a 26.4-percent gain in operating earnings to $117 million on 10.6-percent higher sales of $2030 million, improving the earnings/sales ratio 0.7 points to 5.7 percent. Net income rose 12.9 percent to $58 million.

Among its individual business segments, the tyre business reported operating earnings up 24.7 percent to $111.9 million on 13.4-percent higher sales of $1360 million. Toyo credited "significant" growth in overseas sales -- especially in North America -- and higher domestic sales, both original equipment and replacement, especially winter tyres.

Sales in North America grew 19.5 percent to nearly $542 million, but operating earnings fell.

The chemical/industrial products business reversed a loss from a year ago and reported 8.4-percent high sales, while the automotive parts business fell into the red on delays in getting new production capacity on-stream.