2016 financial results: Toyo Tire & Rubber
Toyo Tire & Rubber has reported a year-on-year decline in net sales, operating income and ordinary income for the 2016, and remained in the red for another year. Even though the company projected in November 2016 the expectation of profit of 12 billion yen, issues with certain non-tyre products led to an extraordinary loss recorded in the closing of accounts for the year, turning the projected profit into a loss of 12.26 billion yen (£86.1 million).
Net sales fell 6.4 per cent year-on-year to 381.6 billion yen (£2.7 billion), while operating income was down 22.2 per cent to 49.3 billion yen (£346.1 million). Ordinary income declined 22.4 per cent year-on-year to 44.1 billion yen (£309.6 million).
The company’s tyre business segment posted net sales of 303.9 billion yen (£2.1 billion), 6.7 per cent lower than in the 2015 financial year and operating income of 45.4 billion yen (£318.7 million), down 21.7 per cent on the prior year.
In Japan, unit sales and net sales exceeded those of a year earlier, despite a continuing decline in the number of cars manufactured in that country. Overseas unit sales and net sales were also up year-on-year. As a result, unit sales and net sales for the original equipment tyre market as a whole outstripped those achieved in 2015.
Replacement market sales were sluggish for the industry as a whole in Japan, and Toyo reports that thanks to robust sales of summer and winter tyres, it was able to boost unit sales year-on-year, even though net sales remained at the same level as 2015. Outside of Japan, unit sales for replacement market tyres increased year-on-year, however net sales declined due to a number of factors, including the strength of the Japanese yen. The tyre maker reports growth in unit sales for the European market thanks to the “aggressive establishment and expansion of sales channels.”