Toyo Tire & Rubber Co. Ltd. posted net income of 11.1 billion yen on net sales of 192 billion yen for the first half ended June 30, 2017. That compares to income of 2.1 billion yen on sales of 186.4 billion yen in the year-ago half.
Compared to the year-ago half, net sales increased 3% and net income increased 414.7%.
Based on the exchange rate on June 30, 2017, Toyo recorded net income of $98.6 million on net sales of $1.7 billion in the first half of 2017. Operating income decreased 16.7% to 21.8 billion yen ($194.3 million) versus the year-ago period.
Toyo’s income-to-sales ratio was 5.7% in the first half.
The company’s earnings were affected by an extraordinary loss of 937 million yen ($8.3 million) related to costs to replace defective earthquake shock absorbers installed in buildings.
Tire sales are up in North America
Net sales in the company’s tire business rose 3.6% compared to the year-ago period to 154 billion yen ($1.4 billion). Operating income fell 11.9% to 21.4 billion ($191 million).
In Japan, net tire sales fell 1.9% to 66.3 billion yen ($590 million). In North America, net tire sales increased 3.7% to 89.4 billion yen ($795 million). Sales in other geographic regions increased 11.4% to 36.4 billion yen ($324 million).