Toyo Tires reports strong growth in annual sales, profits

Hyogo, Japan – Toyo Tire Corp. has reported a strong performance for the year 2021, helped largely by the growth of its tires business.

The tire maker reported a 46% rise in operating income to Yen53 billion, on 15% higher sales of Yen393 billion, said a Toyo announcement 15 Feb.

Toyo achieved the profit growth entirely during the first nine months of the year, while fourth quarter operating income fell marginally compared to the year before.

The Japanese group said business environment remained challenging during 2021, mainly due to soaring raw material prices and rising ocean freight rates caused by a shortage of containers.

Despite the challenges, net sales, operating income, and ordinary income exceeded the previous fiscal year's figures due to strong demand for tires, especially in the North American market, a weaker yen, and the effect of cost reductions.

The strong performance was driven by the tires business unit, which posted net sales of Yen354 billion, up 15.7% from 2020.

Segment operating income of rose 43.7% to Yen55 billion, driven by sales and a 2% positive currency impact.

Toyo’s automotive parts business unit narrowed loss to Yen2 billion, up Yen12 million compared to 2020. The segment saw sales increase 5% to Yen38 billion during the year.