Toyo upgrades 2024 forecast as second quarter earnings exceed projections

Hyogo, Japan – Toyo Tire Corp. has revised its earnings forecast, issued in February, for the fiscal year ending 31 Dec 2024, the group announced 9 Aug

Operating income is now projected to come in at Yen81 billion, 3.8% above the February forecast and about 5.2% up on the Yen77 billion result achieved in 2023.

Toyo has held with its previous forecast for sales to reach Yen560 billion, compared to Yen553 billion in the 2023 fiscal year.

The group linked the upward earning revision to a better-than-forecast performance in the second quarter, with the yen weaker than anticipated against foreign currencies.

Furthermore, Toyo said, the "impact of rises in raw materials prices and ocean freight costs was lower than expected, and the benefits of cost-cutting measures were greater than expected.” 

For the second quarter, Toyo reported a 78.3% increase in operating income on net sales of Yen273,501 million yen, 3.0% higher than in the same period last year.

At the Japanese group’s Tire business unit, operating income came in 71.2% higher at Yen46,898 million on net sales up 3.6% year-on-year to Yen251,291 million

Toyo’s Automotive Parts business unit, meanwhile, posted net sales 3.1% higher year-on-year at Yen22,209 million for the three months to 30 June

Second quarter operating income at the Automotive Parts unit was Yen660 million - compared to an operating loss of Yen728 million in the the same period in 2023.