HYOGO, Japan — Toyo Tire Corp. reported solid gains in operating income and sales during fiscal 2021 versus 2020, with business in North America outperforming the company's other regional business units.
Toyo reported a 46.1% jump in pre-tax operating income to $483 million on 14.5% higher sales of $3.59 billion, raising the operating ratio three points to 13.5%.
Toyo is projecting sales growth of 15.6% in 2022, but forecasts operating income will drop by roughly 16% due largely to rising raw-materials and freight/shipping costs.
At the same time, Toyo projects capital expenditures will rise nearly 60% this year versus 2021. The company anticipates its newest factory, under construction in Serbia, will come on stream this summer and help alleviate demands on the company's U.S. plant, which in turn will continue to convert more capacity to larger rim-diameter light truck/SUV tires.
Toyo's tire business unit, which represents 90% of corporate sales, outperformed the automotive parts business, posting a 12.5% gain in operating income to 501.7 million on 15.7% higher revenue of $3.23 billion.
Toyo posted 23.3% higher sales in North America last year of $2.09 billion, which results in North America's accounting for 58% of the company's global sales. Toyo noted that its replacement market sales in the region were up 11% last year versus 2020.
The North American business also reported 48.6% higher operating income of $155.3 million, or 7.4% of sales.