Toyo Shares Plunge Following Revelation of False Test Data

Share prices for Toyo Tire & Rubber plummeted following revelations that the company falsified data related to the fire resistance tests conducted on some of its building products. Stocks fell 21 per cent to 131 yen (£0.55), wiping out 27.4 billion yen (£104 million) in market value, the greatest single drop in more than three decades.

The company stated on November 5 that it had reported the issue to Japan’s Land, Infrastructure & Transport Ministry, and Toyo will now most likely have to expend about 4 billion yen (£16.8 million), the equivalent of approximately two-thirds of last year’s profit, rectifying shortcomings in wall and roof components.

Toyo Tire shares were not traded on November 5 as the number of offers to sell the shares outnumbered bids to buy. According to Japanese stock exchange rules, a stock cannot trade unless the number of bids matches the number of offers.