HYOGO, Japan—Toyo Tire Corp. has revised up its full-year earnings outlook as the group reported a strong third quarter, buoyed by higher sales, lower costs and favorable currency effects.
The group now expects operating income for 2024 to come in at $550 million, up 6.2 percent compared to an earlier estimate of $518 million, Toyo said.
The upward revision followed a "record high" third quarter, in which Toyo increased sales 2.8 percent year-on-year to $2.7 billion.
Earnings for the period increase 51.5 percent to $486 million, helped by strong sales of "priority" products and external factors such as lower freight costs and favorable forex effect.
Segment-wise, Toyo's Tire business unit posted a 49-percent year-on-year increase in third quarter earnings to $479 million, on 3.5-percent higher sales of $2.8 billion.
The automotive parts business unit reported a staggering improvement in earnings, up at $8.32 million from $294,000 reported the year before.
The gains were made despite 4.5 percent lower sales of $214 million, compared to $224 million reported in the same quarter last year.
In terms of regions, Toyo's overall sales in Japan dropped 6.1 percent year-on-year to $505 million, while North America saw a 6-percent increase to $1.8 billion. Other regions also posted a slight increase in sales.
Earnings grew both in Japan and North America, with Japan seeing a 14-percent year-over-year improvement in earnings to $320 million.
North America posted an 11.6-percent earnings improvement over last year to $106 million.
