HYOGO, Japan—Toyo Tire Corp. posted 83.1 percent higher operating income for the quarter ended March 31 on 6.9 percent higher sales.
Operating income rose to $119.9 million on sales revenue of $827.7 million, yielding an operating ratio of 14.5 percent, up six points versus a year ago. Toyo cited the positive effects of higher sales and higher capacity utilization rates for the improved earnings picture.
Net earnings increased sixfold to $114.7 million.
Despite the improved sales and earnings, Toyo did not change its forecast for the full fiscal year, issued earlier this year, which projects a 21 percent improvement in operating earnings and 8 percent increase in sales over 2020.
Toyo's tire business unit—which represents nearly 89 percent of total sales—reported a 78.3 percent improvement in operating income, to $124.4 million, on 7.5 percent higher sales of $733.4 million.
Business in North America increased 17.2 percent over 2020 to $460.7 million, and now accounts for nearly 56 percent of Toyo's global sales. Operating earnings attributable to North America more than doubled to $33.1 million, or 7.2 percent of sales.
Toyo reported that tire production at its U.S. operations jumped 25 percent over the first quarter of 2020 and is projected to end the year 14 percent ahead of 2020.