Toyo Reports 53 billion yen of Net Sales, Profits Back in Black

Toyo Tire & Rubber Co., Ltd., has reported that it has returned to first quarter profitability with an operating income of 2,612 million yen compared with an operating loss of 3,054 million yen in the first quarter of 2009. Net income faired less well but showed the company returned to the black by this measurement too, with 743 million yen in the first quarter of 2010 compared with a net loss of 2,620 million yen for the same period in 2009. Period net sales totalled 72,162 million yen, up 9,789 million yen or 15.7 per cent over the first quarter of 2009. The tyre business unit posted net sales of 53,097 million yen and operating income of 1,995 million yen.

Commenting on its relative performance in the OE and replacement channel, Toyo representatives commented that compared to the same period of 2009, the production of automobile in the Toyo’s Japanese domestic market improved due to the support by government tax incentives on consumer purchases of hybrid vehicles and increased number of car for export markets. As a result, net sales and unit sales of original equipment tire sales for the domestic market exceeded the level of the first quarter of 2009. Unit sales of tyres in the domestic replacement market are also said to have increased in line with recovery of the domestic economy.

Toyo’s replacement tyre unit sales in the North America and European markets “significantly exceeded” the firm’s performance in the first quarter of 2009, according to the company. In the Middle East and South East Asia markets, unit sales and net sales are also said to have “significantly increased.”

Table 1: Year-on-Year Sales Volume by Region

Table 2: Change in Tyre Production (New Rubber Volumes) in 1000s of tons.

Source: Toyo Tire & Rubber Co., Ltd.

Looking at the specifics of Toyo’s regional sales shows that unit volumes grew significantly faster in Japan than in the other “overseas” markets (see table). First quarter volumes were 16 per cent ahead of 2009 figures in Japan, following on from a 14 per cent rise the year before. For its part the overseas group grew 12 per cent. Look closer and you can see that US and European unit sales were up just 4 and 5 per cent respectively. In Europe’s case this followed a 13 point drop in 2009 and therefore leaves sales 8 points behind its 2008 level.

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