Toyo Tire & Rubber Co. Ltd. posted net profit of 722 million yen on net sales of 71.4 billion for its first quarter ended June 30, 2005. Sales were up 13.9% over the same period last year.
Operating income and ordinary income totaled 3.17 billion yen and 3.56 billion yen, respectively.
In the "tires" business segment, Toyo recorded net sales of 46.8 billion yen, an increase of 16% over 1Q 2004, and operating income of 2.8 billion yen.
Sales of original equipment tires increased over the same period in 2004, the result of an increase in the production of new models equipped with Toyo tires. This coincided with a general increase in vehicle production in Japan.
Sales of replacement tires in Japan decreased slightly from the previous year, "resulting from a counter-reaction to the last-minute demand spike that occurred just before the previous year's price hike."
Tire sales in overseas markets greatly increased, due to favorable sales of high-value-added products such as large diameter tires.
Following the release of Toyo's consolidated financial results, the company revised its mid-term fiscal 2005 business forecasts. It projects the following business results for the first half ending Sept. 30:
* Sales of 136 billion yen
* Net profit of 1.3 billion yen
* Ordinary income of 5.3 billion yen.
Toyo says it revised its May 11, 2005, predictions "due to healthy sales growth under steady demand, and the greater-than-expected depreciation of the yen in exchange markets."
