Toyo Sales Drop 25% in H1 FY2009

Toyo Tire & Rubber remained in the red during the first half of the current financial year, recording a net loss of 1,976 million yen (£13.24 million). Sales during the six months to September 30 dropped 25.0 per cent year-on-year to 129,609 million yen (£868.25 million), and operating loss amounted to 1,300 million yen (£8.71 million), compared with an operating income of 1,177 million yen in the first half of the 2008 financial year. The company’s tyre business unit generated 74.0 per cent of the company’s entire sales and posted a first-half net turnover of 96,001 million yen (£643.11 million) – a 21.6 per cent decrease from a year earlier.

Sales of original equipment tyres for the Japanese domestic market increased, spurred by government tax incentives on consumer purchases of hybrid vehicles. However, sales volumes and net sales declined from previous year levels due to a severe downturn in first quarter sales. Replacement truck and bus tyre sales for the Japanese domestic market declined from year-ago levels due to a sharp slowdown in overall market demand. Replacement passenger car tyre sales on the other hand increased in volume as a result of enhanced sales activity. As a consequence, total domestic tyre sales by both volume and net sales remained unchanged from first-half results for the 2008 financial year.

In international markets, replacement tyre sales were mixed, with markets in China and Latin America showing a steady increase in sales volume, while demand in major markets such as North America and Europe were affected by delays in the economic recovery. Overall, total sales volume and net sales fell sharply below levels a year earlier.