Toyo's income-to-sales ratio is 9.4%

Posted on May 9, 2014

Toyo Tire & Rubber Co. Ltd. recorded net income of nearly 9.1 billion yen on net sales of 96 billion yen for its first quarter ended March 31, 2014. That compares to income of 4.2 billion yen on sales of 83.5 billion yen for the same period last year.

Based on the exchange rate on March 31, 2014, Toyo posted net income of $88.3 million on net sales of $933.9 million for 1Q 2014. Its income-to-sales ratio was 9.4%.

Operating income for the quarter increased 86.7%, from nearly 6 billion yen to 11.1 billon yen ($108.2 million).

Sales for the tire business unit, which represent 78% of total sales, were up 16.2%, to 75.2 billion yen ($732 million). Operating income was up 98%, to 10 billion yen ($97.7 million).

Original equipment tires, Japan

Automobile production volume in Japan increased on rush demand in advance of the consumption tax hike, but due to a shift in production to car models not equipped with Toyo tires, unit sales and net sales declined compared with the same period the previous year.

Replacement tires, Japan

Unit sales and net sales increased compared with the same period the previous year as a result of strong sales of the Transpath series minivan tires released as new products and rush demand in advance of the consumption tax hike.

Replacement tires, overseas markets

In the North American market, unit sales and net sales increased as a result of strong sales of high-value-added SUV tires accompanying economic recovery.

In Europe, unit sales and net sales increased as a result of acquiring new customers in Russia and rebounding demand in Germany.

In China and Southeast Asia, unit sales and net sales also increased.

Toyo has revised its previously announced first-half projections upward due to an improved tire sales structure, a less-than-expected market deterioration, a decrease in raw material prices, and a weaker-than-expected yen. Toyo's first-half results will compare to 1H 2013 as follows: net income will increase 77.1%, to 16 billion yen; net sales will increase 11.5%, to 193 billion yen; and operating income will increase 66.6%, to 23 billion yen.

Related Topics: OE tires, raw material costs, Toyo financials

Comments ( 0 )
More Stories
News K&M Tire Dealers Learn Sales, Customer Service and Efficiency Tips

K&M Tire Inc. founder Ken Langhals likes to remind his 600-plus employees that a customer’s tire order one day doesn’t guarantee another order the next. And that means K&M’s annual dealer conference is an opportunity to provide dealers with help and extra services that set it apart from other wholesalers.

Article An Insight into Tires and Their Problems in Europe

The National Tyre Distributors Association (NTDA) recently held its annual conference, which, although traditionally staged in the UK, represents the ongoing current issues in the tire industry throughout Europe (at least until the Brexit negotiations are completed) and attracts an extensive and diverse range of delegates.

Article Close the Gap or Lose the Sale: Use Your Advantages to Overcome Abandonment

I’m tired of talking about the internet, but I might be the only one. It’s a subject that tire dealers talk about all the time, and it doesn’t appear the internet is going out of business anytime soon. There aren’t any future plans to turn it off.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!