HYOGO, Japan — Toyo Tire Corp.'s fiscal 2020 operating income dropped 5.5% on 8.9% lower sales, but management is forecasting a solid recovery in 2021.
2020 operating income fell to $343.7 million on $3.22 billion in sales, Toyo said. Net income fell 52.3% to $109.4 million.
Sales in North America slipped 6% to $1.74 billion, but Toyo is forecasting a recovery in 2021 of 9.6% to a level that would exceed 2019 revenue.
Toyo said it expects sales and earnings to rebound in 2021 by over 8% and 21%, respectively.
The tire business unit reported a 7.4% drop in operating income to $369 million on 7.9% lower sales of $2.87 billion.
Tire production in tonnage terms fell 13.6% in 2020 to 212.3 million metric tons, with the bulk of the decline in the second quarter at the height of the pandemic-induced global business interruption.
Toyo's projecting the tire unit will recover in 2021, posting 20% better earnings on 8.6% higher sales. Toyo said it expects production to rebound in 2021 by over 19%, which would be 3% greater than than 2019 levels.
Production in the U.S. fell 11.2% last year but is projected to rebound and grow in 2021 by nearly 28% to 79.4 million tons, or roughly 13% better than 2019.