Toyo Tire & Rubber Co. Ltd. posted net income of 5.9 billion yen on net sales of 98.1 billion yen for the first quarter ended March 31, 2017. That compares to income of 61 million yen on sales of 95.3 billion yen in the year-ago quarter.
Based on the exchange rate on March 31, 2017, Toyo recorded net income of $52.6 million on net sales of $877.4 million in its first quarter of 2017. Operating income increased 1.1% to 12.1 billion yen ($108.3 million) versus the year-ago period.
The company’s earnings were affected by an extraordinary loss of 918 million yen ($8.2 million) related to costs to replace defective earthquake shock absorbers installed in buildings.
Tire Sales Are Up Outside of Japan
Net sales in the tire business rose 3.5% compared to last year’s first quarter to 78.8 billion yen ($705.2 million). Operating income increased 5.3% to 11.8 billion yen ($105.3 million).
In Japan, net tire sales fell 4% to 32.6 billion yen ($292.1 million). In North America, net tire sales increased 3.4% to 45.2 billion yen ($405.6 million). Sales in other geographic regions increased 14.9% to 20.2 billion yen ($180.8 million).
For Toyo’s 2016 first quarter results, see “Toyo’s Net Tire Sales Edge Up Slightly in 1Q.”