OSAKA, Japan (Aug. 6, 2009)—Toyo Tire & Rubber Co. Ltd. fell deeper into the red in the quarter ended June 30 as sales plunged 28 percent from a year ago.
Toyo's operating and net losses for the period were $32 million and $27.4 million, respectively, as sales tumbled to $653.1 million. In the 2008 quarter, Toyo had an operating profit but a net loss.
Toyo cited the impacts of lower sales, lower capacity utilization and exchange rate changes for its losses.
Toyo's tire business unit was $26.6 million in the red on an operating basis as sales fell 24.1 percent to $493.7 million. Sales fell in all markets except for the Japanese replacement market, which experienced a surge during the period as customers bought ahead of announced price increases. Japanese OE demand, though, was significantly down.
Sales in North America slumped 28.7 percent to $209.3 million, while Toyo's combined business in North America stayed in the black, although just above break-even at $366,491, 97 percent lower than a year ago.
Toyo's DiverTech and other non-tire businesses fell $5.8 million into the red on 37.9 percent lower sales.
Toyo management declined to make a forecast for the rest of fiscal 2010, saying “business conditions remain uncertain” after the third quarter.