Toyo in 1Q: overall loss, decrease in sales
Toyo Tire & Rubber Co. Ltd. posted a net loss of 2.6 billion yen on net sales of 62.3 billion yen for its first quarter ended June 30, 2009. That compares to a net loss of 1.4 billion yen on sales of 86.6 billion yen for the same period in its previous fiscal year.
Based on the exchange rate on June 30, 2009, Toyo recorded a net loss of $27.1 million on sales of close to $650 million for its first quarter of fiscal 2009.
Toyo also suffered a 1Q operating loss of 3 billion yen versus operating income of nearly 1.3 billion yen for the first quarter of fiscal 2008.
The tire segment posted net sales of 47.1 billion yen ($491 million), down 24.1% compared to the same period a year ago. Toyo says there are signs of recovery in the original equipment segment in Japan, but overall, the domestic market's car production "is still flagging."
Sales volumes of replacement tires in Japan exceeded the level of sales in the first quarter of FY2008, while net sales were comparatively on par. "Sales did well with our activities for sales expansion," says the company. "In addition to this reason, sales temporarily grew prior to the price increase due to last minute purchases by clients/customers.
"However, we saw a rebound effect following the price increase, with sales slumping due to the diminishing of this temporary demand."
Toyo's net sales in North America sharply fell below the levels of the first quarter of FY2008.