HYOGO, Japan—Toyo Tire Corp.'s fiscal 2020 operating income dropped 5.5 percent on 8.9 percent lower sales, but management is forecasting a solid recovery in 2021.
2020 operating income fell to $343.7 million on $3.22 billion in sales, Toyo said. Net income fell 52.3 percent to $109.4 million.
Sales in North America slipped 6 percent to $1.74 billion, but Toyo is forecasting a recovery in 2021 of 9.6 percent to a level that would exceed 2019 revenue.
Toyo said it expects sales and earnings to rebound in 2021 by more than 8 percent and 21 percent, respectively.
The tire business unit reported a 7.4 percent drop in operating income to $369 million on 7.9 percent lower sales of $2.87 billion.
Tire production, in tonnage terms, fell 13.6 percent in 2020 to 212.3 million metric tons, with the bulk of the decline in the second quarter at the height of the pandemic-induced global business interruption.
Toyo's projecting the tire unit will recover in 2021, posting 20 percent better earnings on 8.6 percent higher sales. Toyo said it expects production to rebound in 2021 by over 19 percent, which would be 3 percent greater than than 2019 levels.
Production in the U.S. fell 11.2 percent last year but is projected to rebound and grow in 2021 by nearly 28 percent to 79.4 million tons, or roughly 13 percent better than 2019.