HYOGO, Japan—Toyo Tire Corp. reported lower sales and earnings for the quarter ended March 31 as the company's business in Japan and in world markets other than North America waned.
Operating earnings fell 4 percent to $92.5 million on 3.8 percent lower sales of $821.9 million, Toyo reported. During the quarter, Toyo took a one-time extraordinary loss of $17 million related to its rubber seismic isolation products business, reducing net income 16.2 percent to $51.2 million.
Toyo reported sales drops of 7.2 percent and 12.2 percent in Japan and other international markets, which offset a 2.1 percent increase in sales in North America, to nearly $420 million.
Toyo's tire business unit suffered an 8.3 percent drop in operating income, to $95.8 million, on 2.5 percent lower sales of $716 million. Toyo reported a slight change in the sales mix, with OE sales rising to 19.6 percent of 9 million tires shipped during the quarter. from 17.4 percent a year ago; commensurately, replacement market shipments slipped to 80.4 percent of the total.
The extraordinary loss pertains to sub-standard seismic isolation bearings the company sold in 2015. The loss relates to potential claims still outstanding related to products and their installation.
For the full fiscal year, Toyo said there is no change from the forecast issued in mid-February—operating earnings to slip 5.6 percent versus fiscal 2018 on 1.7 percent higher sales.