OSAKA, Japan—Toyo Tire & Rubber Co. Ltd. reported double-digit gains in sales and earnings for the quarter that ended March 31 on increased business both domestically and internationally in nearly all business sectors.
Operating and net income jumped 86.7 and 114.5 percent, respectively, to $103.8 million and $84.7 million on 14.9 percent better sales of $897.2 million, Toyo reported.
Toyo pointed to lower raw materials costs, positive effects of increased sales and foreign exchange rate changes as reasons for its earnings improvements.
Toyo's tire business near doubled its operating earnings to $93.8 million on 16.2 percent higher sales of $703.1 million. Toyo attributed the increased sales to higher replacement market volume demand domestically and internationally, especially for higher-value-added SUV tires in Japan and North America. OE sales to car makers in Japan fell in the quarter.
Toyo's sales in North America (tire and non-tire businesses together) jumped 21.1 percent to $326.5 million. Operating income jumped 65.2 percent to $28.4 million.
Toyo's replacement market unit tire sales in North America jumped 10 percent in the quarter
Based on the earnings and sales growth in the first quarter, coupled with a decrease in raw material prices and a weaker-than-expected yen, Toyo raised its previously announced forecasts for income and sales for the first half by 28 and 15 percent, respectively.