HYOGO, Japan — Toyo Tire Corp. reported lower sales and earnings for the quarter ended March 31 as the company's business in Japan and in world markets other than North America waned.
Operating earnings fell 4% to $92.5 million on 3.8% lower sales of $821.9 million, Toyo reported. During the quarter, Toyo took a one-time extraordinary loss of $17 million related to its rubber seismic isolation products business, reducing net income 16.2% to $51.2 million.
Toyo reported sales drops of 7.2% and 12.2% in Japan and "other" international markets, which offset a 2.1% increase in sales in North America, to nearly $420 million.
Toyo's tire business unit suffered an 8.3% drop in operating income, to $95.8 million, on 2.5% lower sales of $716 million. Toyo reported a slight change in the sales mix, with OE sales rising to 19.6% of 9 million tires shipped during the quarter. from 17.4% a year ago; commensurately, replacement market shipments slipped to 80.4% of the total.
The extraordinary loss pertains to sub-standard seismic isolation bearings the company sold in 2015. The loss relates to potential claims still outstanding related to products and their installation.
For the full fiscal year, Toyo said there is no change from the forecast issued in mid-February — operating earnings to slip 5.6% versus fiscal 2018 on 1.7% higher sales.