Toyo sales & profits up, further growth expected in 2013

Toyo Tire & Rubber Co. Ltd. has published its consolidated business results for the 2012 financial year – a shortened, nine-month period owing to the Japanese firm’s changeover to a January to December fiscal year in 2012.

During the period between 1 April and 31 December 2012, Toyo Tire & Rubber achieved consolidated net sales of 291,110 million yen (£2.0 billion), almost exactly the projected figure given on 9 November 2012. On a synchronised basis, looking at 2011 results from April to December for Toyo’s companies in Japan and January to December for its overseas companies, this 2012 sales figure represents a year-on-year sales increase of 3.97 per cent. Actual 2011 sales, calculated from 1 April to 31 March, were 320,569 million yen. Operating income for April – December 2012 came to 15,650 million yen (£107.3 million), just a touch higher than the 9 November projection and up 30.7 per cent on a synchronised basis. Operating margin rose from 4.3 per cent to 5.4 per cent. Ordinary income for the 2012 reporting period was 13,645 million yen (£93.6 million), a rise of 51.2 per cent on a synchronised basis, while net income stood at 13,218 million yen (£90.6 million).

From this total, Toyo’s Tire business unit posted net sales of 228,744 million yen (£1.6 billion), up 4.42 per cent year-on-year on a synchronised basis, and operating income of 13,014 million yen (£89.2 million), which using the same measure increased 30.9 per cent. Tire profit margins rose from 4.5 per cent to 5.7 per cent.

The business unit’s original equipment sales rebounded after the previous year decrease in production following the 2011 earthquake, along with a rise in production volumes of Japanese cars and strong sales of vehicles equipped with Toyo tyres. The tyre maker reports that both sales volume and net sales were favourable.

The Japanese passenger car tyre replacement market also experienced favourable sales and volumes, says Toyo. This rise occurred in part thanks to an increase in added-value products such as fuel-efficient tyres and strong winter tyre sales.

As for overseas markets, European aftermarket sales remained at the same level as the previous year due to the impact of the economic downturn. The same applied in North America, with sales remaining at the same level due to strong SUV tyre sales compensating for weaker sales in other segments. Both sales and volumes were favourable in Southeast Asia. Overall, sales and volumes remained at the same level as the previous year in Toyo’s overseas markets.

During the nine months of the 2012 financial year Toyo produced 101,000 tons of tyres in Japan and 59,500 tons in other regions, giving the company a total production of 160,500 tons. Raw material prices increased by an average of 7.0 per cent in the reporting period, with natural rubber increasing 8.4 per cent.

The company’s current outlook for the 2013 financial year – this time a 12 month reporting period – is for net sales of 360,000 million yen (£2.5 billion), operating income of 22,000 million yen (£150.9 million) and a margin of 6.1 per cent, ordinary income of 19,000 million yen (£130.3 million) and net income of 12,000 million yen. Projected 2013 sales for the Tire business unit stand at 284,100 million yen (£1.9 billion), while an operating income of 18,800 million yen (£128.9 million) and an operating margin of 6.5 per cent are expected.