HYOGO, Japan—Toyo Tire Corp. suffered a 9.3 percent drop in fiscal 2019 operating income on 4 percent lower sales, a result the company attributed primarily to higher manufacturing costs and foreign-exchange rate changes.
Operating profits fell 9.3 percent to $353.7 million on sales of $3.47 billion, dropping the operating ratio slightly to 10.2 percent. Net income more than doubled from 2018 to $225.2 million
For the current fiscal year, Toyo is forecasting a rebound in both sales and earnings—operating income up 14.4 percent on 2.3 percent higher sales.
The tire division fared a bit worse. Operating income fell 11.7 percent to $380.8 million on 2.6 percent lower sales of $3.06 billion. Tire production fell during the year as well, both in terms of units and tonnage, Toyo reported, without elaborating on the reasons for the declines.
By geographical region, North America outperformed other areas, reporting earnings and sales only slightly marginally below the fiscal 2018 results. Operating income slipped 0.1 percent to $77 million on 0.2 percent lower sales of $1.82 billion.
Tire production in North America slipped 1.8 percent in 2019, Toyo's figures show, but should rebound in 2020, ending the year 9.4 percent up on 2019.
The North American performance contrasted with 6.9 percent and 9.5 percent sales drops by Toyo operations in Japan and other overseas markets, respectively.