OSAKA, Japan—Toyo Tire & Rubber Co. Ltd. posted a double-digit increase in sales and operating earnings last year, but net income was down compared to 2012.
Toyo attributed the improvements to the strong performance of its North American tire business, the weakening yen/dollar exchange and stable raw materials prices.
Toyo's operating income for the year advanced more than 24 percent over the fiscal 2012 synchronized number to $381.2 million, while sales were up nearly 12 percent to $3.79 billion.
The percentage changes are approximate because Toyo changed its fiscal year reporting in 2011-12 to calendar year-end from a March 31 year-end, which resulted in fiscal 2012 figures that included only nine months of the firm's Japanese-based results.
Nonetheless, Toyo's operating income ratio nearly doubled last year to 10.1 percent.
For fiscal 2014, Toyo is projecting sales growth of about 8 percent and operating income growth of about 7.5 percent. Net income should more than double.
By business unit, Toyo's tire business reported operating income of $345.8 million on sales of $2.97 billion. Operating income was up marginally over 2012 while sales shot up 15.2 percent.
Toyo attributed the tire business' growth to "favorable" unit sales and revenue in overseas markets, which offset lower sales in Japan. Growth in North America was driven by greater demand for higher value-added products, Toyo said.
Operating income for Toyo's businesses (tire and non-tire) in North America nearly doubled to $80.9 million on 32-percent higher sales of $1.43 billion.
Toyo is planning to boost capital investments this year 18 percent to about $340 million, or nearly 8.5 percent of sales.