Strong U.S. market boosts Toyoda Gosei's sales

AICHI, Japan—Toyoda Gosei Co. Ltd. has seen revenue and profits rise over the first nine months of its fiscal year, due mainly to a strong performance in the U.S. market.

Sales over the nine months to end of December were up 17 percent year-on-year at $5.3 billion due mainly to the recovery of automotive production in overseas and the foreign exchange effects of the weaker yen.

Higher sales, Toyoda Gosei said Feb. 7, were achieved despite production cutbacks by major customers in Japan, due to semiconductor shortages and "other factors."

In terms of profits, the group reported a 25-percent rise in operating profit to $179.7 million, driven by higher sales and a "group-wide initiative" to address costs and increase revenue.

In terms of geographical regions, Toyoda Gosei saw sales in Japan decline 2 percent year-on-year to $2.2 billion, mainly due to production cutbacks by major customers.

Segment profit plunged 90 percent to $6.09 million, due mainly to the impact of decreased sales, changes in the product mix and an increase in fixed costs.

In Americas, sales were up 40 percent at $1.8 billion, driven by factors such as the recovery of automotive production and the depreciation of the yen.

Profits in the region jumped 903 percent to $70 million as sales increased and cost improvements were implemented to reflect higher cost of materials, transport and energy in prices.

Asia also saw a 52-percent rise in profit to $114.2 million, on 30-percent higher sales to $1.6 billion.

The growth, Toyoda Gosei said, was driven by a recovery in automotive production in China, Thailand and India, as well as the depreciation of the yen.

Europe and Africa remained in red, as the segment reported a loss of $10.7 million, down from last year's $3 million.

Toyoda Gosei linked the decline to the reduction in production of its subsidiary in the United Kingdom and the impact of soaring prices of materials and energy.

The region reported an 8.5-percent increase in sales to $160 million, mainly due to the depreciation of the yen.