Toyo Reports Record 11% Sales Increase

Toyo Tire & Rubber Co. Ltd has reported record annual net sales of 300.2 billion yen (£1.412 billion, 2.75 billion euros), an 11.2 per cent increase on 2005. Operating income for the 2005 financial year also grew, totalling 13.094 billion yen (£61.627 million, 90.5 million euros) up 8.5 per cent year-on-year. However this total was short of the company’s target of 13.6 billion yen. During the period, Toyo’s net income fell 22.1 per cent to 5.378 billion (£25.313 million, 37.2 million euros). Toyo’s results presentation explain that the fall in its various income totals was largely impacted by the rise in raw material costs that is effecting all manufacturers.

Next year Toyo will try to beat this year’s figures by some 11.2 per cent. As far as net sales are concerned, the company is aiming for 334 billion yen (£1.572 billion, 2.3 billion euros). Company executives predict that net income will rise 20.9 per cent to 6.5 billion yen (£30.593 million, 44.8 million euros). The company predicts it will record 11.4 per cent and 1.5 per cent drops in its operating and ordinary income figures respectively this time next year.