Through three quarters, Toyo posts net loss
Toyo Tire & Rubber Co. Ltd. recorded a net loss of nearly 10 billion yen on net sales of 269.3 billion yen for the first nine months of its 2008 fiscal year ended Dec. 31, 2008. That compares to net income of 6.9 billion yen on sales of 272 billion yen for the same period the previous year.
Based on the year-ending exchange rate, Toyo lost $110.5 millon on sales of nearly $3 billion for the period. According to Toyo, the loss was "due to an exclusive loss of retirement benefit expenses," which cut into deferred income tax assets.
Operating income totaled 611 million yen ($6.7 million).
Net sales for the tire segment were up in yen 1.7%. They represented 73.3% of total sales, or 197.4 billion yen. Operating income was down 90.5%, to 1.1 billion yen.
Sales volumes in North America also fell below fiscal year 2007 levels for the same period "due to the impact of a recession in the U.S.A.," says the company. In Europe, sales volumes rose period to period.
Toyo has revised its performance forecast for fiscal 2008, which will end March 30, 2009, as a result of the "economic slowdown." The company expects a net loss of 14.3 billion yen on net sales of 220 billion yen.