HYOGO, Japan — Toyo Tire Corp. reported solid earnings for the six months ended June 30 on an 18.7% jump in revenue, to $1.93 billion, prompting management to revise upward the firm's earnings and revenue forecast for all of fiscal 2023.
Operating income for the period edged up 2.7% to $194.3 million, yielding a respectable operating ratio of 10%, albeit one-and-a-half points lower than the corresponding 2022 period. Net income fell 6.1% to $212.1 million.
Toyo's tire business unit posted a 0.2% gain in operating income, to $199.6 million, on 18.9% higher sales of $1.77 billion, yielding an operating ratio of 11.3%.
Net earnings fell 6.1% to $13.9 million, in part due to a $1 million extraordinary loss related to the seismic rubber isolation bearings case that's been a negative draw on Toyo's financials since 2015.
Toyo reported $1.27 billion in sales revenue in North America, up 18.5% over the 2022 period, based in part on growing replacement market sales of light-truck tires. As such, North America represents just shy of two-thirds of Toyo's global sales.
Operating income attributed to North American operations fell 4.4% to $72.6 million.
For the full year, Toyo is projecting a 12.6% gain in revenue to over $4 billion, along with a 36% improvement in operating income, for an 11% operating ratio, up two points over 2022.
The North American business units are expected to lead the charge, with projected revenue gain of nearly 14% over 2022, Toyo's figures show.