TOKYO (Aug. 10) — Toyo Tire & Rubber Co. Ltd. reported double-digit growth in operating income and sales in the first quarter, but net income fell by more than half.
Toyo management attributed the earnings gain to higher sales, cost rationalization efforts and the impact of exchange rate changes, which raised the firm´s forecast for the first half significantly.
For the three months ended June 30, Toyo reported operating income of $34.2 million on sales of $671.3 million, improvements of 22.2 and 12 percent, respectively. Net income fell 55.3 percent to $29.5 million.
Toyo´s tire division operating profits grew 27.9 percent in the period to $33 million, while sales increased 17.3 percent to $474.2 million.
Toyo´s revenue growth came entirely from its overseas operations, with sales in North America growing 20.6 percent to $223.5 million. North America now accounts for one-third of Toyo´s global sales.
Operating earnings in North America shot up to $11.1 million from just over break-even a year ago.
For the six months ending Sept. 30, Toyo is forecasting sales should grow by 18 percent over last year while operating earnings should be nearly equal to last year.