Toyo Tire Corp Sees Drop in Operating Income in 2018

Toyo Tire Corp Sees Drop in Operating Income in 2018

The Toyo Tire Corp. saw a drop in operating income and net sales for 2018 with projections for 2019 looking up. 

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.

 

 

You May Also Like

Firestone Airide Tennessee Plant Recognized for Safety

This is the facility’s fourth STAR award, reflecting the company’s and
teammates’ commitment to a safe and healthy work environment.

Firestone Airide, a division of Firestone Industrial Products Company, announced that the company’s Dyersburg, Tenn., manufacturing facility has received its fourth Volunteer STAR (Safety Through Accountability and Recognition) award.

The Volunteer STAR award recognizes the best-of-the-best in safety and health programming and performance. Patterned after the federal Occupational Safety and Health Administration Voluntary Protection Program, the Volunteer STAR award is the state’s highest honor for workplace safety and health.

Apollo Tyres Opens Digital Innovation Center in India

In partnership with the Telangana Government, Apollo Tyres announced the launch of a digital innovation centre in Hyderabad, India.

MEMA Announces New Structure and Brand

The realignment will allow the association to better serve members and prepare for the future of mobility.

restructure
RNR Tire Express Named to Entrepreneur’s Franchise 500 List

The RNR team is celebrating 10-plus years being named to the Franchise 500 list.

‘New Culture,’ Dealer Commitment to Fuel Nexen Tire’s Growth

Hear what Nexen Tire executives have to say about the tire industry, supply chain and what dealers can expect from the company this year.

Nexen-Tire-John-Hagan-exec-VP-Sales

Other Posts

Magna Tyres Brings Latest OTR Tire Range to ConExpo Show

The latest OTR tire products will be displayed on the Magna Tyres stand.

ALI Announces Digital Lifting Points Guide

ALI is offering a digital lifting points guide that covers vehicles from model years 2000 through 2023.

Goodyear and Gatik Demonstrate Goodyear SightLine Technology

Goodyear and Gatik demonstrated, in a proof of concept, intelligent tires powered by Goodyear SightLine technology.

Chapel Hill Tire Gives Back Through 12 Days of Kindness Initiative

Discounts, charity and giving back was how Chapel Hill Tire celebrated the holidays.