OSAKA, Japan (May 15) — Toyo Tire & Rubber Co. Ltd. said rising raw materials costs forced down its operating income by 30 percent for the year ended March 31, although sales hit a record $2.74 billion.
The world´s 11th-largest tire maker reported operating earnings of $80.1 million on 6.7-percent higher sales. Net income improved 11.8 percent to $51.4 million, caused in part to one-time gains from the sale of a shopping center leasing business, the company said.
Toyo´s North American operations posted a 20.2-percent increase in sales to $838.9 million. Overall, the company said its tire division´s sales rose 8.8 percent to $1.87 billion but operating earnings 33.6 percent to $69.8 million.
For the current fiscal year, Toyo is forecasting a double-digit rebound in earnings and 8.9-percent growth in sales.