Toyoda Gosei sees patchy growth, returns to profit in Europe

Tokyo – Rubber-based parts maker Toyoda Gosei has reported increased first quarter operating profit and sales, despite sharp declines in performance in China and Japan.

Operating profit for the quarter ended 30 June came in at Yen17.2 billion (€107 million), up 5.1% versus the same period last year, Toyoda Gosei reported 31 July.

Sales for the quarter grew 1.9% to Yen265 billion, mainly due to the depreciation of the yen and despite a decrease in automotive production.

Geographically, Toyoda Gosei's revenue in Japan fell 3.8% year-on-year to Yen102.9 billion, reflecting a decrease in production among customers.

Segment profit fell 23% year-on-year to Yen3.0 billion, mainly due to the impact of decreased sales and an increase in fixed costs.

In the Americas region, Toyoda Gosei saw 25.5% year-on-year growth in profit to Yen9.6 billion, supported by increased sales, rationalisations and forex effects.

Meanwhile, sales in the Americas region grew 14.4% year-on-year to Yen110 billion, according to the Japanese group's statement.

The Europe & Africa region returned to profit: a Yen700,000 profit in the first three months of fiscal year, compared a loss of Yen300,000 a year ago.

Revenue in the region rose 3.8% to Yen8.8 billion as factors such as foreign exchange effects offset a decline in production by customers.

India also delivered strong growth: profits up 114% year-on-year to Yen800,000, supported by  revenues 43% higher at Yen10.3 billion.

By contrast, profits in China fell 90% year-on-year to Yen100,000, as sales fell 21.4% to Yen24 billion during the first quarter.

Revenue in the rest of Asia increased 1.9% year-on-year to Yen32 billion, while profits declined 9% to Yen2.4 billion.

With the first quarter results, Toyoda Gosei maintained its forecast for fiscal year 2025, expecting to deliver sales of Yen1,050 billion and operating profit of Yen53.0 billion.