HYOGO, Japan—Toyo Tire Corp. reported solid gains in operating income and sales during fiscal 2021 versus 2020, with business in North America outperforming the company's other regional business units.
Toyo reported a 46.1-percent jump in pre-tax operating income to $483 million on 14.5 percent higher sales of $3.59 billion, raising the operating ratio three points to 13.5 percent.
Toyo is projecting sales growth of 15.6 percent in 2022, but forecasts operating income will drop by roughly 16 percent due largely to rising raw-materials and freight/shipping costs.
At the same time, Toyo projects capital expenditures will rise nearly 60 percent this year versus 2021. The company anticipates its newest factory, under construction in Serbia, will come on stream this summer and help alleviate demands on the company's U.S. plant, which in turn will continue to convert more capacity to larger rim-diameter light truck/SUV tires.
Toyo's tire business unit, which represents 90 percent of corporate sales, outperformed the automotive parts business, posting a 12.5 percent gain in operating income to 501.7 million on 15.7 percent higher revenue of $3.23 billion.
Toyo posted 23.3 percent higher sales in North America last year of $2.09 billion, which results in North America's accounting for 58 percent of the company's global sales. Toyo noted that its replacement market sales in the region were up 11 percent last year versus 2020.
The North American business also reported 48.6 percent higher operating income of $155.3 million, or 7.4 percent of sales.