Toyo Reports 10 billion yen 2008 Net Loss
Toyo Tire & Rubber Co., Ltd. has announced a full-year 2008 net loss of 10,722 million yen (£72.87 million) on the back of what the company termed “extremely severe” management conditions. In its full-year 2007 results Toyo had reported net profits of 6,137 million yen (£41.7 million). Compared to 2007 net sales decreased to 328,371 million yen (down 8.1 per cent). Toyo’s tyre segment posted net sales of 242,009 million yen (£1.644 billion), a figure that fell at half the rate of the group as a whole, down £70.7 million yen or 4.1 per cent compared to 2007). Toyo’s tyre business reportedly accounts for 73.6 per cent of total sales.
According to the company report, sales volumes and net sales of original equipment tyres for the domestic market fell drastically below the previous year’s level, due to the global recession, especially the sharp reduction of domestic car production in the fourth quarter of 2008. While the company’s North American branch experienced the same kind of dramatic decline seen across the whole market, in the European market sales volumes and net income were the same level as full-year 2007, partly due to sales expansion activities. Even more positively Middle Eastern and South East Asian market sales volumes and net sales “significantly exceeded” prior year levels. However, sales volumes were the same level as 2007 and net income fell below.