News

Toyo Tire & Rubber Co. Ltd. Annual Result

11.05.2009

Summary Report of Consolidated Business Results for FY 2008
(May 11, 2009)

Toyo Tire & Rubber Co., Ltd. (President and CEO: Kenji Nakakura) has announced its consolidated business results for FY 2008 (from April 1, 2008 to March 31, 2009).
The management condition of the Company has been extremely severe due to slowdown of capital investment and declining in personal consumption. The first half saw increases of raw material prices including natural rubber and petrified raw materials. Also, the second half saw the economic recession in the world by worsening financial crisis in the U.S.
As a result of these, the consolidated business results for FY 2008 are as follows;
Compared to FY 2007, net sales decreased to 328,371 million yen (down 28,861 million yen or 8.1%), operating loss was 2,964 million yen (Operating income of FY2007 was 13,168 million yen), ordinary loss was 6,179 million yen (Operating income of FY2007 was 9,893 million yen), and net loss was 10,722 million yen (Net income of FY2007 was 6,137 million yen)

Results by business segment are as follows:

1. Tires
The tire segment posted net sales of 242,009 million yen (down 10,410 million yen or 4.1% compared to FY 2007), and accounted for 73.6 % of total sales.
Sales volumes and net sales of original equipment tires for the domestic market fell drastically below the previous year’s level, due to a global recession, especially the sharp reduction of domestic car production in the fourth quarter of FY 2008.
Regarding replacement tires for the domestic market, lineup of eco-friendly products improving CO2 emission control and fuel efficient has been enhanced. However, sales volumes fell drastically below the level of the previous year, due to rapid recession in Japan and a warm winter. On the other hand, net sales were the same level of FY2007, partly due to price hiking activities.
Overseas, the North American market saw sales volumes and net sales fell drastically below FY2007 levels, partly due to a declining in personal consumption because of a recession in the U.S.A. On the other hand, in the European market, sales volumes and net income were the same level of FY2007, partly due to sales expansion activities.
Also, in the Middle Eastern and South East Asian markets, sales volumes and net sales significantly exceeded the level of the previous year, owing to a solid increase in incoming orders. However, sales volumes were the same level of FY2007 and net income fell below compared to FY2007 in the total overseas markets.

2. DiverTech and other business segments
DiverTech and other business segments posted net sales of 86,362 million yen (18, 451 million yen or down 17.6% over FY 2007). It accounted for 26.4% of total sales.
In the fields of industrial/building materials, net sales of the fields of standard anti-vibration rubber and hoses drastically fell below compared to FY2007, due to flagging orders centering on products related to investment in facilities reflecting market conditions. On the other hand, net sales of anti-vibration rubber for construction significantly exceeded sales of the previous year, owing to the steady increases of incoming orders.
In the transportation machinery field, net sales of anti-vibration rubber parts, which is the flagship product, fell drastically below the previous year’s level, due to sluggish incoming orders especially in the fourth quarter of FY 2008, compared to a steady increase of incoming orders in the first half of FY2008.
Net sales of seat cushions for automobiles fell sharply below the level of FY2007, owing to a drastic decrease of incoming orders in the fourth quarter of FY 2008. Also, in the fields of anti-vibration rubber and air springs for railway cars, incoming orders increased steadily.
However, net sales fell drastically below the level of FY2007, due to sluggish incoming orders in the second half of FY 2008.
Net sales of thermal insulation/waterproofing materials in the fields of thermal insulation/waterproofing materials and rubber coated fabric drastically fell below compared to FY2007.
Also, shares in domestic sales subsidiaries of flexible polyurethane business were sold and make them an equity method affiliate as one of the efforts of structural reform from the second half of FY2008. As a result of this, its consolidated net sales are not included in the second half.

【Consolidated Balance Sheets】

(Unit: Millions of yen)

【Consolidated Balance Sheets】

(Unit: Millions of yen)

【Consolidated Statements of Income】

(Unit: Millions of yen)

【Consolidated Statements of Cash Flows】

(Unit: Millions of yen)