Toyo Tire & Rubber Co. Ltd. recorded net income 521 million yen on consolidated net sales of 294.1 billion yen for its 2010 fiscal year ended March 31, 2011. That compares to income of 2.9 billion yen on sales of 287.7 billion yen for the same period last year.
Based on the exchange rate on March 31, 2011, Toyo posted net income of nearly $6.3 million on net sales of $3.5 billion for its recently completed fiscal year.
Toyo's operating income totaled 12.2 billon yen, up 40.6% from its previous fiscal year.
"As for the impact of the 'Great East Japan Earthquake,' even as the damage to facilities in the factory in the Northeast Region, such as the Sendai Plant, was minimal, manufacturing activities needed to be temporarily halted following the earthquake," says the company.
"Even after production resumed, it could not immediately return to full normal operations because of the destruction caused to the logistical infrastructure in the Northeast Region. Moreover, further damage was caused when the greater part of the tires for export, raw materials and fuel supply stored in warehouses around the Port of Sendai were swept away.
"Also, the factories that make automobile parts significantly reduced productions, due to cut-backs in operations among manufacturers of new vehicles."
Tire sales accounted for almost 74% of the company's total sales. Toyo's Tire Business Unit posted net sales of 216.6 billion yen and operating income of 8.8 billion yen.
In North America, tire unit sales volume declined compared to the previous year "due to the effect of the high tariff policy for tires made in China," according to the company.
"However, net sales exceeded the numbers for the same period in the prior year, due to increased sales in high value-added products and ultra-high performance tires."
Toyo estimates it will recorded net income of 2 billion yen on net sales of 322 billion yen for the 2011 fiscal year ending March 31, 2012.
"In the Tire Business Unit, the amount of supply will be enhanced by expanding the production volume," says Toyo. One way the company will accomplish is by increasing production in United States factories.
