The Toyo Tire Corp. saw a drop in operating income and net sales for 2018 with projections for 2019 looking up.
In its 2018 year-end financial report, the company reported 393 billion yen ($3.55 billion) in net sales in 2018, down from 405 billion yen ($3.65 billion) in 2017. The company’s operating income stood at 42.4 billion yen ($382 million) compared to the previous year at 45.3 billion yen ($408.8 million).
The company experienced losses in each quarter of 2018 with a fourth-quarter loss of 4.333 billion yen ($39 million) in cost of repairs and replacement of seismic isolation rubber products, 258 million yen ($2.3 million) in compensation, etc., and 609 million yen ($5.5 million) in miscellaneous charges (primarily, in payroll for the seismic isolation rubber task force, etc.), Toyo said.
In the breakdown of its 2018 year-end financials, Toyo saw an increase in North American net sales by 11.8 units, including an increase in tire sales of 14.6 units. It also recognized shareholder voting rights for the Mitsubishi Corp., which gained a 20% stake in Toyo last February. The next shareholder’s meeting is Mar. 28.
On fiscal year 2019 projections, Toyo said, “As at the present time, it is difficult to reasonably estimate the amount, in the event that costs arise in the future, an additional reserve for product warranties may be posted depending upon the progress of measures.”
The company is projecting a 1.7% increase in net sales and a 5.6% decrease in operating income for fiscal year 2019.
For the company’s full 2018 year-end financial report, click here.
