Revised Toyo Figures Show Improved Profitability

Toyo Tire & Rubber has made a number of revisions to the consolidated performance forecasts for the first half of the fiscal year ending March 31, 2010 (April 1, 2009 to September 30, 2009) that it released on May 11, 2009. Predicted net sales have been bumped down 7.4 per cent, or 10.4 billion yen (£69.7 million) to 129.6 billion yen (£868.3 million). Despite this reduction in sales, however, operating loss is expected to decrease from 2.8 billion yen to 1.3 billion yen (£8.7 million). Ordinary loss will also diminish, from 4.1 billion yen to 1.3 billion yen. Net loss also decreases from 4.2 billion yen to 2.0 billion yen (£13.4 million).

The Japanese manufacturer states that “urgent countermeasures for profitability improvement” and the yen’s depreciation are key reasons for these latest revisions. In addition, ordinary income and net income are expected to exceed its previously announced forecast by 2.8 billion yen (£18.8 million) and 2.2 billion yen (£14.7 million) respectively, due to an increase of operating income and an equity method investment gain which exceeded expectations.

Toyo states it is now formulating its full-year performance forecast and will announce it at the time of release of first half financial results for fiscal 2009.