Toyo Tire & Rubber Co. annouce Q1 results
07.08.2009
OSAKA, JAPAN - August 6, 2009 . TOYO TIRE & RUBBER CO., LTD. (President and CEO:Kenji Nakakura) has announced its consolidated business results for the first quarter of FY 2009 (from April 1, 2009 to June 30, 2009). Compared to the same period of FY2008, net sales decreased to 62,373 million yen (down 24,266 million yen or 28.0%), operating loss was 3,054 million (operating income was 1,259 million in the first quarter of FY2008) and ordinary loss was 2,943 million yen (ordinary income was 1,205 million yen in the first quarter of FY2008). Net loss was 2,620 million yen (net loss of the first quarter of FY2008 was 1,438 million yen).
Results by business segment are as follows:
1. Tires
The tire segment posted net sales of 47,151 million yen (down 14,989 million or 24.1% compared to the same period of FY2008), accounting for 75.5% of total net sales. Regarding original equipment tires for domestic market, there are signs of recovery in some types of cars, but car production is still flagging. Therefore, sales fell drastically below the level of the same period of FY2008.
Sales volumes of replacement tires for the domestic market exceeded the level of the first quarter of FY2008 and net sales was on par with the same period of FY2008. This is because sales did well with our activities for sales expansion. In addition to this reason, sales temporarily grew prior to the price increase due to last minute purchases by clients/customers. However, we saw a rebound effect following the price increase, with sales slumping due to the diminishing of this temporary demand.
Meanwhile, overseas sales volumes and net sales in North American, Middle Eastern and South East Asian markets sharply fell below the levels of the first quarter of FY2008. In European market, sales volumes and net sales drastically fell below the level of the same period of FY2008, owing to sluggish sales in developing countries.
2. DT (DiverTech) and other business segments
DT and other business segments posted net sales of 15,221 million yen (down 9,276 million yen or 37.9% compared to the same period of FY2008), accounting for 24.5% of total net sales. Regarding the transportation machinery field, there are signs of recovery in some types of cars, but car production is still flagging. Therefore, net sales of anti-vibration rubber products and seat cushions for automobiles, which is the mainstay of this segment, drastically fell below the same period of a year earlier. However, net sales of air springs for railway cars significantly exceeded the level of the first quarter of FY2008, owing to a steady increase of incoming orders. In the fields of industrial/building materials, net sales of standard anti-vibration rubber, rubber coated fabric and anti-vibration rubber for construction sharply fell below compared to the same period of FY2008. On the other hand, net sales of urethane products for roads significantly exceeded the level of the first quarter of FY2008. In the field of thermal insulation/waterproofing materials, net sales of liquid concentrate of rigid polyurethane was the same level as the first quarter of FY2008. However, net sales of thermal insulation applications for livestock barn fell below the same quarter of the year earlier, due to a sagging market.
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