OSAKA, Japan (June 14) — Toyo Tire & Rubber Co. Ltd. reported improved operating income and record sales in fiscal 2006, with the tire business segment leading the way, but the firm suffered a 28.1-percent drop in net income.
For the period ended March 31, Toyo reported operating income of $115.7 million, up 8.5 percent, on sales of $2.65 billion, up 11.2 percent. Net income fell to $47.5 million; Toyo did not elaborate on the reasons for the net income decline.
Toyo´s tire business grew 15.4 percent during the year to $1.77 billion in sales, on the strength of overseas sales in North America, Europe and elsewhere, the company said, and operating earnings rose 10.9 percent. Sales in North America shot up 23 percent during the year to $720.8 million, but operating income fell 95.4 percent to $459,364, partly due to the start-up costs for Toyo Tire North America, the new manufacturing plant in White, Ga.
The other two business units — chemicals/industrial products and automotive parts — had mixed results.
Chemicals/industrial products reported a 3.4-percent sales gain and a 163.2-percent jump in earnings, while automotive reports had an operating loss on 4-percent higher sales.
Toyo is forecasting 11-percent higher sales in fiscal 2007 but a slight dip in operating earnings due to continued increases in raw materials costs. Net income, however, is forecast to double due to the anticipated proceeds of the planned sale of commercial real estate holdings in Japan.