Sales, Profits up at Toyo in Q1, 2010
During the first quarter of the 2010 financial year, Toyo Rubber received net sales of 72,162 million yen (£528.2 million), a 15.7 per cent increase on the same period last year. This increase in sales was matched by a 13 per cent increase in global tyre sales by volume, with a total of 43,700 tonnes of tyres produced in the three months to June 30, 2010. The bulk of this, 37,500 tonnes, was destined for the Japanese market. Operating income for the quarter was 2,612 million yen (£19.1 million), compared with an operating loss of 3,054 million yen a year earlier, and net income amounted to 743 million yen (£5.4 million) compared with a net loss of 2,620 million yen in the same period of 2009.
Toyo’s tyre business unit posted net sales of 53,097 million yen (£388.7 million), up 12.6 per cent year-on-year, and an operating income of 1,995 million yen (£7.4 million) during the quarter. The tyre maker reports that sales of original equipment tyres in its Japanese domestic market have improved due to government tax incentives on consumer purchases of hybrid vehicles and an increase in the number of cars produced for export markets. Japanese replacement market sales “significantly” exceeded those in the first quarter of 2009 as demand for tyres has increased in line with the domestic economy’s recovery. Replacement market sales in North America and Europe exceeded the corresponding quarter of last year in terms of unit sales, with net sales “significantly” exceeding last year’s quarter. Unit and net sales significantly increased in Middle Eastern and South East Asian markets.
For the entire first half of 2010, Toyo Rubber estimates net sales of 141,000 million yen (£1.0 billion), an 8.8 per cent increase year-on-year. Operating income is expected to be 3,900 million yen (£28.5 million) for the half and net income 1,000 million yen (£7.3 million). It is anticipated that the company’s tyre business will contribute 102,700 million yen (£751.8 million) to net sales in this half-year period, and generate an operating income of 2,800 million yen (£20.5 million).