HYOGO, Japan — Toyo Tire Corp. posted 83.1% higher operating income for the quarter ended March 31 on 6.9% higher sales.
Operating income rose to $119.9 million on sales revenue of $827.7 million, yielding an operating ratio of 14.5%, up six points versus a year ago. Toyo cited the positive effects of higher sales and higher capacity utilization rates for the improved earnings picture.
Net earnings increased sixfold to $114.7 million.
Despite the improved sales and earnings, Toyo did not change its forecast for the full fiscal year, issued earlier this year, which projects a 21% improvement in operating earnings and 8% increase in sales over 2020.
Toyo's tire business unit — which represents nearly 89% of total sales — reported a 78.3% improvement in operating income, to $124.4 million, on 7.5% higher sales of $733.4 million.
Business in North America increased 17.2% over 2020 to $460.7 million, and now accounts for nearly 56% of Toyo's global sales. Operating earnings attributable to North America more than doubled to $33.1 million, or 7.2% of sales.
Toyo reported that tire production at its U.S. operations jumped 25% over the first quarter of 2020 and is projected to end the year 14% ahead of 2020.
