Toyo Tire Corporation, under President and CEO Takashi Shimizu announced its consolidated business performance for the second quarter of 2020, posting a 15.7% decrease in sales at 150,586 million yen ($1.4 million) compared to Q2 2019.
Toyo also reported a 43.8% drop in operating income in Q2 2019 to 7,928 million yen ($74,832) and a 68.4% decrease in ordinary income to 4,379 million yen ($41,334) compared to Q2 2019.
Toyo Tire’s tire business unit posted net sales of 134,430 million yen ($1.3 million), a decrease of 13.6% and operating profit of 9,733 million yen ($91,876), a decrease of 39.6%, compared to the same period in 2019.
Toyo’s automotive parts business unit posted net sales of 16,129 million yen ($152,245), a decrease of 29.5% from the same period in 2019 and an operating loss of 1,805 million yen ($17,038), a decrease of 1,049 million yen ($9,901) from the same period in 2019.
Toyo said after hitting bottom in April, tire demand in the replacement market has started to recover in some regions, including North America. As automakers have resumed production, demand for tires for new vehicles has increased, Toyo reported.
The company said in anticipation of life “with corona,” it is taking various structural changes, such as work-from-home measures. In addition, Toyo said a souring U.S.-China relationship has increased the likelihood of anti-dumping duties being imposed. However, the company is making plans to outperform the market in demand in the recovery phase.
Toyo said its tire and auto components production bases across the world are back to normal operation, as it works to build a supply structure with an appropriate level of inventory to ensure timely supply that matches demand. In efforts to ensure business continuity, the company is also steadily expanding sales of new products, slowly returning to the previous sales volumes in each market. It is also steadily implementing earnings structure reforms and pursuing financial activities with a conservative financial forecast in mind.