OSAKA, Japan (May 12, 2011)—Toyo Tire & Rubber Co. Ltd. suffered an 82.6-percent drop in net earnings for the fiscal year ended March 31 as sales grew 2.2 percent to $3.44 billion.
Toyo's operating income grew 40.6 percent to $142.3 million, or 4.1 percent of sales, overcoming to a degree higher costs for raw materials throughout the year. Net income fell to 0.2 percent of sales.
Toyo management is forecasting a drop in operating income for fiscal 2012 of about 63 percent. Sales are expected to rise nearly 10 percent.
The tire business unit reported a 27.8-percent gain in operating income to $103.5 million on 1.1-percent higher sales, to $2.53 billion. Toyo reported higher revenue in Europe and North America, while domestic revenue was on par with the previous year.
North American revenue was up despite lower tire unit sales, Toyo said, on the effects of higher selling prices and sales of more higher-value tires.