Toyo Increases European Tyre Sales 12% in H1, 2010

Toyo Tire & Rubber reports a global 9.0 per cent increase in tyre sales volumes during the first half of the 2010 financial year, with European sales volumes surging 12.0 per cent. In total, the company produced 88,900 tonnes of tyres during this six-month period until September 30, 76,200 of this in Japan. Net sales within the half-year reached 143,431 million yen (£1.1 billion), 10.7 per cent above the corresponding six months of 2009. This improvement, Toyo notes, has occurred due to a recovery in demand. During the quarter between July 1 and September 30 Toyo reported net sales of 71,269 million yen (£546,4 million).

Operating income during the second quarter amounted to 1,475 million yen (£11.3 million) and 4,087 million (£31.2 million) during the half-year. During the first six months of the previous financial year Toyo recorded an operating loss of 1,300 million yen. Net income for the quarter was 223 million yen (£1.7 million) and it amounted to 966 million yen (£7.4 million) in the six months to September 30. During the first half of the 2009 financial year the company experienced a net loss of 1,976 million yen.

Net sales from Toyo’s tyre business segment during the second quarter were 50,985 million yen (£388.9 million), up 4.4 per cent year-on-year, while net tyre sales of 104,074 million yen (£793.8 million) during the first half represent a year-on-year increase of 8.4 per cent. Operating income in the second quarter was 511 million yen (£3.9 million) and 2,506 million yen (£15.7 million) in the first half.

At present, Toyo forecasts total net sales of 300,000 million yen (£2.3 billion) for 2010 (220,000 million of which are expected to come from the company’s tyre business), a 4.3 per cent improvement over the 2009 financial year. Operating income is expected to be 10,400 million yen (£793.3 million), 20.0 per cent over that of 2009, while anticipated net income for 2010 is 4,000 million yen (£30.5 million), a 35.3 per cent year-on-year improvement.