Toyo Tire & Rubber Co. reported an increase in net sales, operating income and ordinary income for the first half of 2015. However, the company also reported a special loss due to the cost of replacing substandard quake-absorbing pads in buildings.

The company reported a 30.4 billion yen loss between January and June for the cost of replacing the quake-absorbing pads.

“With respect to this matter, the company has envisaged every possibility and considered future handling and measures, and as a policy has decided in principal to replace all units of the concerned products with products that conform to the performance standards required in the initial design phase provided there is no objection from the concerned parties including owners, tenants, clients and construction firms,” Toyo said in a release accompanying its results.

While Toyo reported a special loss, the company also reported a 3.8% increase of nets sales to 194,402 million yen year over year. Additionally, Toyo reported a 35.5% increase in operating income to 29,126 million yen and a 26,670 million yen increase in ordinary income.

Toyo’s tire business posted a 4.7% increase of net sales y-o-y to 154,222 million yen. In North America, tire unit sales remain unchanged compared to the same period as a year ago, but with more sales in the high-value SUV category net sales increased y-o-y, the tiremaker said.