Toyo Tire earnings dip on operational cost rises

Hyogo, Japan – Toyo Tire Corp. has seen a 10% year-on-year decline in first quarter operating income, due mainly to the higher costs for raw materials and production.

The Japanese tire & rubber group recorded an operating income of Yen14.5 billion (€98 million), on 27% higher sales of Yen129 billion, said an 11 May statement.

The ‘tire business unit’ registered a 29% increase in revenue to Yen118 billion, with positive sales development in all the three regions of Japan, North America and ‘other’.

The business unit, however, saw operating income fall 12.3% to Yen14.6 billion, said Toyo, noting the negative impact of production costs, raw materials and plant start-up costs.

These were partially offset by the depreciation of the yen as well as favourable freight costs.

Toyo’s ‘automotive parts business unit’ posted an operating loss of Yen38 million, up from a loss of Yen494 million reported the year before.

The unit saw sales increase 10% year-on-year to Yen11 billion during the three months to end of March.