Toyo Tire & Rubber Co.’s stock fell after the company disclosed that its building material rubber product failed to meet certification for protecting against earthquakes, according to Bloomberg.
Toyo stated that the rubber-laminated bearings it sold as being certified by the Ministry of Land, Infrastructure and Transport failed to meet the regulator’s criteria. The tiremaker said the bearings were delivered from July 2004 through February 2015 and were used in 55 properties, Bloomberg reported. Toyo said it will work with the ministry in offering exchanges of the product.
Following the statement, Toyo’s stock dropped as much as 18% before closing 13% down.
Roughly one-fifth of Toyo’s revenue comes from industrial and construction products, while tires account for the rest, according to media reports.