Reforecast Sees Toyo Sales Downwardly Revised

Toyo Tire & Rubber has made several revisions to its consolidated and non-consolidated performance forecasts for the fiscal year ending March 31, 2009. The company’s previous forecasts were announced on February 9, 2009. Consolidated forecast net sales for the year have dropped four billion yen to 328 billion (£2.3 billion), while operating income has been downwardly adjusted by a billion yen to minus three billion (-£21.2 million). Net income, now forecast to be minus 10.8 billion yen (-£76.4), is up from February’s estimate of minus 12.7 billion.

Non-consolidated net sales are now forecast to be 216 billion yen (£1.5), a drop of four billion. Operating income, at minus 11 billion yen (-£77.8), has been downwardly revised by 1.7 billion yen. Net income is now forecast to be minus 11.6 billion yen (-£82.1) instead of minus 14.3 billion.

In announcing these changes, Toyo made the following comment: “Despite of our efforts for recovering earnings including building production structure meeting demand and reinforcement of cost down activities, operating income and ordinary income on both consolidated and non-consolidated basis are expected to fall below its previously announced forecasts, due to the rapid demand decreases as a result of the global economic slowdown. Also, net income is expected to exceed its previously announced forecasts as a result of revaluation of collectability of its deferred tax assets.”