Toyoda Gosei sees increase in 2022 profits, expects upward trends into 2023

TOKYO—Toyoda Gosei Co. Ltd. has reported a slight increase in 2022 annual profits and expects the upward development to strengthen this year.

The Japanese group saw operating income for the year ended March 31 rise by just under 1 percent to $266 million, on 15-percent higher sales of about $7.3 billion.

Toyoda Gosei linked the revenue increase to higher sales mainly in the Americas and Asia, in addition to the impact of yen depreciation.

Profits rose due to increased sales, the effects of an ongoing rationalization program and the impact of material market on selling price, the company said.

Breaking down the regions, Japan saw a decline in profit due to an increase in fixed cost and the "rebound of temporary factor."

Profits in Americas and Asia climbed by 13 percent and 15 percent, respectively, due to higher sales, according to the group's April 27 financial statement.

Europe and Africa reported continued losses during the year, due to production cutbacks at Toyoda Gosei's United Kingdom subsidiary.

For this fiscal year, the group expects operating profit to rise 5 percent to $286 million, despite a projected 3.3-percent dip in sales to $6.6 billion.

The increased earnings, said Toyoda Gosei, will mainly stem from savings under a rationalization program—despite an anticipated rise in wage costs.