Q3 climb in Toyo turnover, profits

Toyo Tire & Rubber’s third quarter 2013 results, published on 12 November, show a 10.5 per cent year-on-year increase in net sales for the June to September quarter, to ¥268.2 billion (£1.7 billion). Third quarter operating income, at ¥24.7 billion (£155.6 million), was up 159 per cent year-on-year and offered a 9.2 per cent margin; Toyo says favourable raw material prices and exchange rate impact were the largest contributor towards this improvement in operating income. Net income amounted to ¥6.1 billion (£38.8 million).

Sales from the company’s Tire business rose 15.4 per cent year-on-year in the third quarter of 2013 to ¥208.8 billion (£1.3 billion) while operating income rose 219 per cent to ¥21.9 billion (£138.2), with a 10.5 per cent margin.

On 12 November, Toyo Tire & Rubber also reported that it has been under investigation by the United States Department of Justice for alleged violations of the US anti-trust laws in connection with automotive parts. The company says it has fully cooperated with the Department of Justice in this investigation and continues to do so.

To cover potential future losses, Toyo has decided to record an extraordinary loss provision for the recently-ended third quarter in the approximate amount of ¥11.7 billion (£73.8 million). The Japanese firm says this provision “is our current best estimate of all costs, expenses and fine amounts that the company may incur by the conclusion of the investigation.”