Toyo Net Income Muted Despite Healthy Sales

Toyo Tire & Rubber has released details of business performance for the first three quarters of the financial year ending March 31, 2008. Year on year net sales for the nine months ending December 31, 2007 increased 13 per cent to 272,023 million yen (£1.29 billion), and operating income jumped 55.6 per cent over that earned in the equivalent months of 2006 to 12,951 million yen (£61.3 million). Net income shrank year on year, however, down 18.9 per cent to 6,946 million yen (£32.9 million). This overall net income result reflects the costs incurred through Toyo’s “compliance reporting issue” that was made public in mid-November 2007.

The company’s tyre business segment generated net sales of 165,363 million yen (£783.3 million), an increase of 17.4 per cent, and operating income of 7,458 million yen (£35.3 million), up 65.9 per cent. Net income for the tyre segment was not specified.

The company’s forecast for the entire financial year includes net sales of 356,111 million yen (£1.7 billion), a slightly higher figure than that forecast in November 2007. Operating income is anticipated to be 11,000 million yen (£52.1 million), and net sales 4,100 million yen (£19.4 million). This final figure has been revised downwards from November’s forecast of 4,700 million yen (£22.3 million). Whole year net sales for the tyre segment are forecast to be 253,000 million yen (£1.2 billion), and operating income 10,600 million yen (£50.2 million).