Toyo Tire & Rubber Co., Ltd. (President: Yoshio Kataoka) has announced its consolidated business results for the first three quarters of fiscal 2006 (from April 1, 2006 to December 31, 2006). Compared with the same period of fiscal 2005, net sales increased to 240,807 million yen (up 5.9%), operating income decreased to 8,322 million yen (down 36.5%), ordinary income decreased to 5,767 million yen (down 53.0%), and net income increased to 8,570 million yen (up 31.8%).While the net sales for the quarter of the year hit a new high for the second straight year, the net income was the highest ever for interim earnings, bolstered by extraordinary income from the sale of the shopping center leasing business operated in Itami City.


Results by business segment are as follows:

1. Tires
   Sales of original equipment tires stayed at the same level as in the previous year due to decreased production of car models equipped with Toyo's products, while domestic automobile production increased. In the domestic market, sales of replacement tires also stood at the same level as in the previous year, reflecting the slow demand, especially for summer tires, despite the launching of new snow tires and vigorous efforts to boost sales of high-value-added products. Meanwhile, overseas sales outstripped the previous year's figure owing partly to the yen weakening further from the previous year's level. As a result, the tire segment registered net sales of 165,363 million yen (up 8.2% year-on-year) and operating income of 7,458 million yen (down 40.5% year-on-year).
   
2. Chemical & Industrial Products
   Among polyurethane products, flexible polyurethane products for bedding/office applications were in good demand, while thermal insulation applications were sluggish. Meanwhile, sales of rubber products grew, thanks to an increase in incoming orders for air springs and anti-vibration rubber products for railroad vehicles, as well as seismic isolation rubber products for buildings. However, affected by the transfer of the rubber lining business and a decrease in the number of large construction projects, the chemical & industrial products segment registered net sales of 31,099 million yen (down 1.6% year-on-year) and operating income of 612 million yen (down 24.8% year-on-year).
   
3. Automotive Parts
   Sales of anti-vibration rubber products grew over the same period of fiscal 2005, thanks to an increase in the number of vehicles equipped with Toyo's products as well as the contribution made by increased production at the manufacturing subsidiary in North America. Sales of seat cushions also achieved growth. As a result, the automotive parts segment posted net sales of 44,062 million yen (up 5.8% year-on-year) and operating income of 67 million yen.

As for the full-year consolidated earnings for fiscal 2006, the Company has revised its previous forecast (released on November 14, 2006) as follows:

(Unit: Million yen)

Net sales; Ordinary income Net income Previous Forecast (Released 11/14/2006) 320,000 10,000 11,000 Revised forecast 320,000 6,000 8,200

Note: The above earnings forecasts are based on information currently available and involve potential risks and uncertainties. Actual results may therefore differ from the forecasted figures due to various factors.

(Unit: Million yen)

First Three Quarters of Fiscal 2006 (4.1.2006 - 12.31.2006) First Three Quarters of Fiscal 2005 (4.1.2005 - 12.31.2005) FY2005 (From April 1, 2005 through March 31, 2006) ♦Business Results Net Sales 240,807 141,352 300,249 Operating Income 8,322 5,454 13,094 Ordinary Income 5,767 5,687 10,453 Net Income 8,570 6,503 5,378 Net Income Per Share: Yen 40.99 31.10 25.58 ♦Financial Position Total assets 337,441 294,702 323,507 Net Assets 97,158 81,444 91,814 Capital Ratio: % 28.1 27.6 28.4 Net Assets Per Share: Yen 469.34 433.53 438.98 ♦By Business Segment Tires Net SalesOperating Income 165,363 7,458 152,847 12,536 200,704 12,310 Chemical & Industrial Products Net Sale Operating Income 31,099 612 31,619 814 41,238 729 Automotive Parts Net Sales Operating Income 44,062 67 41,653 -652 56,667 -493 Other Businesses Net Sales Operating Income 281 158 1,218 337 1,639 454

Note:
1. Segmentation in the above is based on the Company's internal classification for management purposes.
2. Net sales do not include inter-segmental transactions and transfers.

(Unit: Million yen)

♦Results by Geographic Segment Japan Net Sales Operating Income 142,265 8,858 147,246 12,313 193,570 13,878 North America Net Sales Operating Income 71,144 779 60,709 902 81,600 52 Others Net Sales Operating Income 27,397 -124 19,383 1,164 25,079 1,097

Note:
1. Geographic segmentation of countries and regions is based on geographical proximity. ("North America" includes the U.S.A. and Canada, and "Other" includes Europe, Oceania and other regions.)
2. Net sales do not include inter-segmental transactions and transfers.

Summary Report (PDF/86K)

© TOYO TIRE & RUBBER CO., LTD.

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