Net Sales Up, Net Income Down at Toyo

Toyo Tire & Rubber has made public its consolidated business results for the first quarter of the 2007 fiscal year (April 1, 2007 to June 30, 2007). The company reports that, due to the strong performance of the tyre business in overseas markets, net sales rose by 8,895 million yen (£37.2 million) to 82,777 million yen (£345.7 million), a 12 per cent increase on the first quarter of the 2006 fiscal year. Operating income increased 22.2 per cent to 4,217 million yen (£17.6 million), ordinary income was up 54.3 per cent to 4,240 million yen (£17.7 million). Net income, however, decreased 55.3 per cent or 4,498 million yen (£18.8 million) to 3,632 million yen (£15.2 million).

Net sales within the company’s tyre segment increased by 8,608 million yen (£35.9 million) to 58,468 million yen (£244.2 million), an increase of 17.3 per cent. From this figure, OE tyre sales declined below last year’s first quarter level, a drop the company attributes to decreased production of car lines equipped with Toyo’s products. In the domestic Japanese market demand was slow, however Toyo’s “vigorous” efforts to boost sales resulted in sales equivalent to the levels of the same period of the previous year. Meanwhile, the volume of overseas sales, centring mainly on the North American market, comfortably surpassed the levels of the same period of the previous year. This increase, combined with the weaker yen, ensured higher net sales than for the previous period last year. Operating income increased by 27.9 per cent or 890 million yen (£3.7 million) over Q1 2006 to 4,075 million yen (£17.0 million).