Toyo Tire raises forecast with 20% higher sales in first half

HYOGO, Japan—Toyo Tire Corp. reported a slight rise in operating income for the first six months of fiscal 2022 over the same period a year ago on 20-percent higher sales revenue, driven mainly by the firm's tire business.

Operating income for the January-June period rose 3.7 percent to $213.9 million on revenue of $1.84 billion. Net income jumped 50.1 percent to $255.6 million.

Based on the first-half results and Toyo's projections for the second half, Toyo raised its full-year earnings forecast 13 percent to nearly $500 million.

Toyo's tire business, which accounts for 91 percent of the corporation's sales, posted a 22.5-percent increase in revenue, to $1.68 billion, along with a 2-percent improvement in operating income.

North America led the way, with sales up nearly 35 percent in the period to $1.22 billion, or nearly two-thirds of Toyo's revenue for the period.

For the full year, Toyo raised the sales forecast 3.6 percent over the May 2022 projection to about $4.15 billion. That amount of revenue, however, would be 27 percent up over fiscal 2021.

The earnings forecast was unchanged at 10 percent of revenue. Compared with 2021, though, it represents a drop of nearly 6 percent, Toyo said.