Toyo Reports Net Profit
Toyo Tire & Rubber has announced a return to the black with a net income of 2,957 million yen (₤21.5 million) for the 2009 fiscal year. The Japanese company, which made a 10,722 million yen loss during the 2008 financial year, earned a profit in the 12 months to March 31, 2010 despite a 12.4 per cent decline in net sales to 287,726 million yen (₤2.1 billion). Operating income during the recent financial year amounted to 8,664 million yen (₤62.9 million). The company’s tyre business unit posted net sales of 214,291 million yen (₤1.6 billion), accounting for 74.5 per cent of total net sales and a 11.5 per cent drop from 2008 sales. Ordinary income for the 2009 financial year was 6,933 million yen (₤50.3 million); a year earlier an ordinary loss of 1,395 million yen was recorded.
Sales of original equipment tyre sales within the Japanese domestic market were spurred by government tax incentives on consumer purchases of fuel efficient vehicles, along with what Toyo describes as a “continuing favourable demand” for vehicles equipped with its tyres as OE. Toyo states it made substantial gains over the previous year in both unit and net sales.
In the replacement market, unit sales for the Japanese market “substantially” exceeded results obtained in the 2008 financial year, Toyo reports; amongst other reason the tyre maker gives for this is increased consumer interest in fuel efficient passenger car tyres and new studless winter tyres. Overseas, however, replacement market unit and net sales declined “substantially” during the 2009 fiscal year, in part due to higher US tariffs imposed upon tyres produced in China. The slow speed of economic recovery in Europe was blamed for lower sales in this region, while sales continued “at a favourable pace” in the Middle East and China during the year.