Toyo Tire & Rubber Co. Ltd. posted net income of 31.2 billion yen on net sales of 393.8 billion yen for its fiscal year ended Dec. 31, 2014. That compares to income of 11.6 billion yen on sales of 370.2 billion yen for fiscal 2013.
Based on the average exchange rate for 2014, Toyo recorded income of $513.3 million on sales of more than $6.4 billion for its fiscal 2014. The company's income-to-sales ratio was 7.9%.
Operating income increased3.6%, from 10.27 billion yen to 47.5 billion yen.
Toyo's Tire Business Unit posted the following year-over-year results:
* net sales of 312.2 billion yen ($5.1 billion), up 7.7%.
* operating income of 45.3 billion yen ($744.7 million), up 34.1%.
Toyo says its unit sales and net sales in the high-value-added SUV and light-truck tire categories exceeded those of the same period last year. Toyo credits two new products and strong sales of the company’s flagship Open Country A/T II and Nitto-brand Terra Grappler products for the increases.
"For the outlook for the forthcoming term, a gentle recovery of the Japanese economy is anticipated from the effect of economic and financial policies," says the company. "While the U.S. economy is also expected to recover thanks to an improved hiring environment, in Europe and developing nations, the economic future remains uncertain.
"Within this business environment, the company will continue to promote its new three-year "2014 Mid-term Business Plan” growth strategy initiated in fiscal year 2014.
"in the tire business segment, the company will move ahead with expansion of supply capacity for U.S. tire production subsidiary Toyo Tire North America Manufacturing Inc. while pushing to further expand the already robust sales of light truck and SUV tires.
"Furthermore, the company will increase the supply capacity of its tire production base in Malaysia while expanding exports to countries participating in free trade agreements in the Southeast Asian region, where growth continues, in addition to further expanding sales in North America, Europe, Russia and other key markets."
In fiscal 2015, Toyo’s projections call for net income of 28 billion yen on net sales of 425 billion yen. The company predicts operating income will increase more than 8%, to 49 billion yen.
