OSAKA, Japan (Nov. 10, 2011)—Toyo Tire & Rubber Co. Ltd.'s net and operating income improved more than 30 percent in the first six months of its 2011 fiscal year despite a “severe” business environment punctuated by higher raw materials costs.
Net profits rose 31.3 percent to $16.6 million and operating earnings 38.9 percent to $74.1 million. Sales climbed 3.1 percent to $1.93 billion, the company said.
The second quarter performance—net income up 86.5 percent and sales up 8.7 percent — paced the half-year results.
Toyo anticipates operating, ordinary and net income will surpass the numbers forecast in May, due in part to the effect of cost-efficiency measures.
Toyo's tire division posted a 91.8-percent gain in operating income to $6.27 million on 7.3-percent higher sales of $1.46 billion, paced by the firm's overseas businesses.
In Japan, unit sales and revenue were both below the 2010 period as the number of cars built fell markedly in the wake of the March 11 earthquake.
In North America, both the sales volume and net sales increased “substantially,” due to steps taken to improve the profit margin, such as increasing the number of high-value-added tires sold and price increases.