Toyo Tire reports record results as costs decline

Tokyo – Toyo Tire Corp. has seen a significant increase in revenue and earnings for 2023, due in part to higher sales in North America and lower costs.

Operating income for the year came increase 74% year-on-year to Yen77 billion (€474 million), on 11% higher sales of Yen553 billion, Toyo reported 14 Feb.

Revenue increased mainly by growing unit sales of tires in North America, while operating income grew due to the depreciation of the yen as well as the lower costs of raw materials and ocean freight.

Earnings improved on a Yen25 billion positive impact of lower freight costs and a Yen2.6 billion impact of lower raw materials prices.

A positive foreign currency impact of Yen8.6 billion more than offset a Yen4.6 billion impact of higher SGA (selling, general, and administrative) expenses and a Yen1.6 billion plant start-up costs in Serbia.

In the non-tire business, a Yen2.8 billion increase in operating income of automotive parts helped push up earnings.

Toyo’s tire business overall reported a 64.5% year-on-year increase in operating income to Yen76.7 billion, on 11% higher sales of Yen505 billion.

Automotive parts returned to growth, reporting operating income of Yen178 million, compared to a loss of Yen2.5 billion reported the year before.

Segment sales rose 14.6% to Yen47 million, the Japanese tire & rubber group reported.

Breaking down the regions, Toyo saw sales increase in all three regions of Japan, North America and 'others', including Europe.

Japan reported a 188% year-over-year increase in operating income to Yen67 billion, on 11% higher sales of Yen122 billion.

North America, meanwhile, saw operating income drop 11% to Yen17.5 billion, on 11.7% higher sales of Yen358 billion.

Operating income in other regions grew 22% to Yen3.3 billion, on 8.5% higher sales of Yen72 billion, Toyo reported.