Through three quarters, Toyo prospers
Toyo Tire & Rubber Co. Ltd. posted net income of 420 million yen on net sales of 217.7 billion yen for the first three quarters (ended Dec. 31, 2009) of its fiscal year 2009 (ending March 31, 2010).
That compares to a net loss 10 billion yen for on sales of 166.1 billion yen for the same period a year ago.
Based on the exchange rate on Dec. 31, 2009, Toyo recorded net income of $4.5 million on net sales of $2.36 billion for the first nine months of its fiscal year.
Operating Income totaled 6.3 billion yen ($68.8 million) compared with 611 million yen ($6.6 million) for the same period in fiscal year 2008.
Toyo's tire business unit, which represents 75.3% of total sales, posted net sales of 164 billion yen ($1.78 billion), down 16.9%.
"Spurred by government tax incentives on consumer purchases of hybrid vehicles that boosted automobile manufacture, and the continuing favorable demand for Toyo brand original equipment tires, Toyo managed to maintain previous year unit sales of its OE tires in the Japanese domestic market, while improving its net sales," says the company.
"Unit sales of replacement truck and bus tires for the Japanese domestic market were down, reflecting weak sales caused by a severe downturn in the transportation sector. By contrast, unit sales of replacement passenger car tires increased from the previous year as a result of enhanced sales activity, and the introduction of new summer and winter products, but net sales declined due to increased competition."
Toyo says sales volume and net sales for the overseas replacement tire business fell substantially below year-ago levels "due to weak demand in the ever-important U.S. and European markets, despite sales gains in Canada, China and Australia."