TOKYO (July 28, 2009)—Tokai Rubber Industries Ltd. reported sales down by 44 percent for the three months ended June 30 and is forecasting a loss for the full year.
Tokai Rubber makes and sells antivibration solutions to the automotive industry.
Sales for the three months amounted to $464 million, down by 44 percent on the same period a year ago. The company expects sales in the six months to Sept. 30 to be $992 million. Sales for the full year are expected to be $2.1 billion.
Following the decline in sales, Tokai expects to report a loss in each of the periods. In the most recent three months, operating loss was $20.5 million, reversing a profit of $64.4 million a year previously. The forecast for the current year is a loss of $29.5 million, with 42.2 million lost in the first half, with a recovery forecast for the second half.
In terms of net profit, Tokai recorded a loss of $16 million for the most recent period, compared with a profit of $34 million a year ago. The company expects a loss of $36.9 million in the first half, improving to $33.8 million for the full year ended March 2010.