Toyo Announces Increases Sales and Profits in 1H 2006

Toyo Tire & Rubber Co., Ltd. has announced first half 2006 financial results that show increases in both sales and profits, particularly with regards to net income. Compared with the same period of fiscal 2005, net sales increased to 145.7 billion yen (up 3.1% to £651 million), operating income increased to 5,931 million yen (up 8.7% to £26.4 million), ordinary income decreased to 4,404 million yen (down 22.6% to £19.67 million), and net income for the interim period increased to 8,596 million yen (up 292.4% to £38.4 million). While the net sales for the half year hit a new high for the second straight year, the net income was the highest ever for interim earnings, bolstered by extraordinary income from the sale of the shopping centre leasing business operated in Itami City.

Sales of original equipment tyres and replacement tyres in the domestic market stood at the same level seen in the first half of fiscal 2005. This was said to be the result of intensified marketing efforts to boost sales of high-value-added products, centred on the two key brands Tranpath and Proxes, though the performance was affected by lower production of car models equipped with Toyo’s products as well as sluggish demand at home. Overseas sales, meanwhile, grew year-on-year, thanks partly to a greater depreciation of the yen than anticipated early in the fiscal year, despite fluctuating demand attributable to gasoline price hikes and intensifying competition. As a result, the tyre segment posted net sales of 96,992 million yen (up 5.2 per cent from the same period of fiscal 2005), and operating income of 5,226 million yen (up 1 per cent).