Toyo raises full-year outlook amid ‘record high’ third-quarter results

Hyogo, Japan – Toyo Tire Corp. has revised up its full-year earnings outlook as the group reported a strong third quarter, buoyed by higher sales, lower costs and favourable currency effects.

The group now expects earnings (operting income) for 2024 to come in at Yen86 billion (€522 million), up 6.2% compared to an earlier estimate of Yen81 billion, Toyo reported 13 Nov.

The upward revision followed a “record high” third quarter, in which Toyo increased sales 2.8% year-on-year to Yen420 billion.

Earnings for the period increase 51.5% to Yen76 billion, helped by strong sales of ‘priority’ products and external factors such as lower freight costs and favourable forex effect.

Segment-wise, Toyo’s Tire business unit posted a 49% year-on-year increase in third quarter earnings to Yen74.8 billion, on 3.5% higher sales of Yen387 billion.

The automotive parts business unit reported a staggering improvement in earnings, up at Yen1.3 billion from Yen46 million reported the year before.

The gains were made despite a 4.5% lower sales of Yen33.4 billion, compared to Yen35 billion reported in the same quarter last year.

In terms of regions, Toyo’s overall sales in Japan dropped 6.1% year-on-year to Yen79 billion, while North America saw a 6% increase to Yen285.6 billion. Other regions also posted a slight increase in sales.

Earnings grew both in Japan and North America, with Japan seeing a 14% year-over-year improvement in earnings to Yen50 billion.

North America posted an 11.6% earnings improvement over last year to Yen16.5 billion.