Toyo Tire reports 23.8% sales increase in Q2 2021, return to profit

Toyo Tire Corporation achieved second-quarter 2021 net sales of 186,392 million yen (£1.217 billion; 1.438 billion euros; US$1.687 billion), an increase of 23.8 per cent compared with the same period in 2020. Compared with low levels last year, Toyo’s profitability also increased. Operating income amounted to 26,958 million yen, up 240.0 per cent.

The Tire Business Unit, which makes up the vast majority of Toyo’s business, posted net sales of 166,488 million yen (£1.087 billion; 1.285 billion euros; 1.506 billion), up 23.8 per cent compared with 2020. Here, operating income amounted to 27,888 million (£182.085 million; 215.294 million euros; $252.411 million), an increase of 186.5 per cent.

All this means that, while last year Toyo’s pandemic-hit sales were undone by the ongoing cost burden of the 2015 seismic isolation rubber scandal, in the second quarter of 2021 the company returned to overall profit of 35.463 billion yen (£231.581 million; 273.820 million euros; $320.994 million) – a figure that is boosted by non-operating income such as interest and dividends as well as the company’s mostly tyre-related sales.