Toyo exceeds 2024 forecast on record-high sales, favourable currency

Hyogo, Japan – Toyo Tire Corp. has exceeded its sales and earnings forecast for 2024, buoyed by strong sales and depreciation of the Japanese Yen against the US dollar.

For the full-year, the group posted record-high sales of Yen565 billion (€3.6 billion), up 2.3% compared to the year before and 0.9% compared to an earlier estimate of Yen560 billion.

Operating income for the 12-month period increased 22% year-on-year to Yen94 billion, up 9.3% against the group’s earlier forecast, Toyo announced 14 Feb.

The Japanese tire & rubber group linked the gains to an increase in sales of ‘priority products’ and external factors such as favourable currency exchange trends.

In terms of segments, the ‘tire business unit’ increased operating income by 20% year-on-year to Yen92 billion, on 2.8% higher sales of Yen520 billion.

Toyo's ‘automotive parts' business unit posted a 4% decline in sales to Yen 45.5 billion, but saw a strong recovery in operating income as earnings rose from Yen178 million in 2023, to Yen1.9 billion in 2024.

The improved results came in as Toyo completed the final year of its mid-term ’21 plan last year.

In-line with the strategy, Toyo said it boosted sales of high-value added products in Japan to over 70%, and streamlined its product line-up.

Furthermore, Toyo consolidated its European sales functions into its Serbian operation, and will be gradually suspending sales companies in the UK, Germany, The Netherlands and Italy.

The group has also agreed to divest 86% of a Chinese manufacturing subsidiary and intends to increase utilisation at its Serbian plant to build “an optimal production system.”

Toyo further aims to “pursue flexible and agile business operations in North America and other high-growth markets by promoting the optimal allocation of its management resources and establishing an optimal global supply system.”