Toyo revises down earnings forecast amid low utilisation rate in US

Hyogo, Japan – Toyo Tire Corp. has revised down its full year operating income forecast following a sharp decrease during the first nine months of 2022.

Operating income for the nine months to end of September fell 21% to Yen31.4 billion (€216 million), while sales were up nearly 24% at Yen350 billion, said Toyo 14 Nov.

The Japanese tire & rubber group linked the decline in operating income to “lower utilisation at US plant and worsening of region/product mixes.”

Sales revenue, on the other hand, reached a record high due to the favourable yen-dollar rate.

In view of the nine-month performance, Toyo said it was revising down its operating income outlook for 2022 by 20% to Yen40 billion, while maintaining the net sales target of Yen500 billion.

Over the course of the first nine months, Toyo’s Tire Business reported an 18% decline in operating income to Yen33.7 billion, on 26% higher sales of Yen320 billion.

While sales rose in all regions, led by a 35% increase in North America, the business saw a 35% decline in operating income in Japan.

The group’s Automotive Parts business reported an operating loss of Yen2.3 billion, a decrease of Yen850 million on the previous year, while sales increased 5% to Yen30 billion.