TOKYO (Feb. 22, 2008) — Despite Toyo Tire & Rubber Co. Ltd.'s double-digit sales and earnings growth for the nine months ended Dec. 31, the firm has revised downward slightly its earnings forecast for fiscal 2007.
For the first three quarters of the fiscal year ending March 31, Toyo reported a 55.6-percent rise in operating income to $109.9 million while sales grew 13 percent to $2.31 billion. Net income fell 18.9 percent to $59 million.
Toyo's earnings gain came primarily from the positive effects of higher sales, the firm noted in its statement.
Toyo's tire business led the way during the period, reporting 65.9-percent higher operating income of $105 million on 17.4-percent higher sales of $1.65 billion.
The Tokyo-based tire maker's business in North America jumped 23.2 percent to $744.3 million, while operating earnings rose more than fivefold to $34.9 million, for a 4.7-percent earnings ratio.
For the year, Toyo eased back its operating income forecast by about 4.5 percent but still anticipates pretax earnings to exceed those of 2006 by more than 17 percent. The sales forecast was increased by 2 percent to $3 billion.