TOKYO—Toyoda Gosei Co. Ltd. has more than doubled its nine-month operating profit due mainly to higher production volumes by its customers in Japan and the Americas.
For the nine months to end of December 2023, the Japan-based group reported operating profit of $398 million (based on average 2023 exchange rates), up 136 percent from $182 million (based on average 2022 exchange rates) reported for the same period the year before.
Revenue for the nine months increased 14.6 percent year-on-year to $5.7 billion, helped by an increase in production by customers, Toyoda Gosei said Feb. 2.
The group linked the stronger operating profit to improved revenue in the Americas and "efforts on group-wide scale to eliminate loss due to production changes."
In Japan, revenue increased 16 percent year-on-year to $2.4 billion due to stronger demand from customers.
Operating profit came in at $94.6 million, up from $6.1 million reported the year before, driven by higher sales and rationalization efforts.
In the Americas, sales increased 20 percent to $2.05 billion while operating profit grew 146 percent to $161 million, again driven by higher sales and rationalization efforts.
In Asia, the group reported a 16.7-percent increase in operating profit to $185 million, on 6.1-percent higher sales of $1.58 billion.
An increase in production in India helped push up results, despite lower production by customers in China and the ASEAN region.
Europe and Africa returned to growth, posting an operating profit of $12.8 million, up from a loss of $10.6 million reported for the same period last year.
Nine-month revenue in region increased 21.5 percent to just under $185 million, as customers increased production.
As for the outlook of financial results for the full fiscal year, the group has revised up its full fiscal year forecasts, compared to earlier estimates announced on Oct. 31, 2023.
For the year ending March 31, Toyoda Gosei expects to deliver sales of $7.05 billion, up 4 percent compared to an earlier forecast of $6.78 billion.
Operating profit is set to come in at $465 million, up 18.6 percent compared to the previous forecast of $392 million.