Global Tire Sales Greatly Aid Toyo's Results in 3Q 2018
Toyo Tire & Rubber Co. Ltd. posted net income of close to 11.3 billion yen on net sales of 285 billion yen for the third quarter ended Sept. 30, 2018. That compares to income of 11.7 billion yen on sales of 295.2 billion yen for the same period in fiscal 2017.
Based on the exchange rate on Sept. 30, 2018, Toyo recorded net income of $99 million on net sales of $2.5 billion in 3Q 2018. It's income-to-sales ratio was 3.8%.
The company's operating income dropped 7.8%, from 33.3 billion yen to 30.7 billion yen.
Toyo's Tire Business Unit posted net sales of 246.8 billion yen (more than $2.1 billion), an increase of 3.8% compared to last year, and operating income of 33.8 billion yen ($297.7 million), a comparative increase of 1.4%. The Automotive Parts Business Unit reported an operating loss on a 4.3% decrease in net sales.
In North America, which represents 51.2% of Toyo's total sales, net sales were up 5.1%, from 139.1 billion yen in 3Q 2017 to 146.1 billion yen (nearly $1.3 billion) in 3Q 2018. By comparison, sales in Japan were down 18.7%. However, Toyo's operating income in North America was down 19.8% quarter to quarter.
Toyo projects its total sales for fiscal 2018 will reach 390 billion yen, with tire sales representing close to 87% of the total, or 339 billion yen.
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