Toyo Tire & Rubber Co., Ltd. (President and CEO: Kenji Nakakura) has announced its consolidated business results for FY 2007 (from April 1, 2007 to March 31, 2008). Compared with FY 2006, net sales increased to 357,233 million yen (up 36,806 million yen or 11.5%), operating income increased to 13,168 million (up 3,799 million yen or 40.5%), and ordinary income increased to 9,893 million yen (up 4,104 million yen or 70.9%). Net income, however, merely increased to 6,137 million yen (up 122 million yen or 2.0%), due to the fact that expenses expected to be incurred for repair work and other measures related to the "urethane-based heat-resistant building construction materials business" have been recorded as an extraordinary loss.

Results by business segment are as follows:

1. Tires
The tire segment posted net sales of 252,419 million yen (up 34,020 million or 15.6% over FY 2006), accounting for 70.7% of total net sales. Sales of original equipment tires for the domestic market significantly exceeded those of FY 2006 due to expanded sales of high added-value products. Sales of replacement tires for the domestic market, however, fell below the FY 2006 level, due to sluggish demand partly caused by higher crude oil prices and a warmer winter, though sales volumes remained flat. Meanwhile, overseas sales volumes and amounts significantly exceeded those for FY 2006, thanks to steady growth in sales supported by expanded demand in the overall overseas market.

2. DiverTech and other businesses

DiverTech and other business segments posted net sales of 104,814 million yen (up 2,787 million or 2.7% over FY 2006), accounting for 29.3% of total net sales. Delays in construction starts resulting from the amendment to the Building Standards Act led to a significant decline in sales over FY 2006 in the fields of industrial/building materials and thermal insulation/waterproofing materials. In the transportation machinery field, on the other hand, sales of anti-vibration rubber products for automobiles, the mainstay of this segment, grew compared to a year earlier, owing to a steady increase in incoming orders both at home and abroad. Orders for anti-vibration rubber parts and air springs for railroad vehicles remained brisk, and sales significantly exceeded those of FY 2006.

FY2007 (From April 1, 2007 to March 31, 2008)

FY2006 (From April 1, 2006 to March 31, 2007)

♦Business Results

Net Sales	357,233	320,427
Operating Income	13,168	9,369
Ordinary Income	9,893	5,789
Net Income	6,137	6,015
Net Income per share (Yen)	29.36	28.77

♦Financial Position

Total Assets	333,892	335,263
Net Assets	92,604	97,446
Capital Ratio (%)	27.0	28.4
Net Assets per Share (Yen)	432.04	455.83

♦Results By Business Segment

Tires Net Sales Operating Income	252,419 12,472	218,399 8,169
Chemical & Industrial Products Net Sales Operating Income	104,814 690	102,027 1,253

Note:

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

♦Results By Geographic Segment

Japan Net Sales Operating Income	188,382 6,023	184,625 7,924
North America Net Sales Operating Income	115,761 5,112	98,112 336
Other Net Sales Operating Income	53,089 1,488	37,689 (231)

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-segment transactions and transfers.

	End of previous fiscal year March 31, 2007		End of current fiscal year March 31, 2008		Increase (Decrease)
	Amount	Ratio	Amount	Ratio	Amount
(Assets) I. Current Assets	142,636	42.5	154,912	46.4	12,276
Cash on hand and in banks    Notes and accounts receivable - trade    Inventories    Deferred tax assets    Other current assets    Allowance for doubtful accounts II. Fixed assets	16,350 54,089 45,803 2,745 24,175 (527) 192,617	57.5	10,737 68,175 46,096 5,151 25,435 (683) 178,980	53.6	(5,613) 14,086 293 2,406 1,260 (156) (13,637)
Property, plant and equipment	121,888		119,520		(2,368)
Buildings and structures       Machinery and transportation equipment       Tools, furniture and fixtures       Land       Construction in progress    Intangible fixed assets	39,877 46,099 11,165 21,866 2,878 3,100		38,370 44,816 10,545 21,869 3,919 3,467		(1,507) (1,283) (620) 3 1,041 367
Investments and other assets	67,628		55,992		(11,636)
Investment securities       Long-term loans receivable       Deferred tax assets       Other assets       Allowance for doubtful accounts III. Deferred assets	53,470 918 2,342 11,347 (451) 9	0.0	38,514 891 2,626 14,450 (491) -	-	(14,956) (27) 284 3,103 (40) (9)
Bond issue cost	9		-	-	(9)
Total assets	335,263	100.0	333,892	100.0	(1,371)

	End of previous fiscal year March 31, 2007		End of current fiscal year March 31, 2008		Increase (Decrease)
	Amount	Ratio	Amount	Ratio	Amount
(Liabilities) I. Current liabilities	155,692	46.4	172,290	51.6	16,598
Notes and accounts payable - trade    Commercial papers    Short-term bank loans    Corporate bonds due within one year    Accounts payable - other    Income taxes payable    Provision for product warranty    Other current liabilities II. Fixed liabilities	72,537 - 41,983 5,000 24,767 506 - 10,897 82,124	24.5	82,474 2,000 44,801 5,000 21,216 1,481 3,262 12,054 68,998	20.7	9,937 2,000 2,818 - (3,551) 975 3,262 1,157 (13,126)
Bonds    Long-term debt    Reserve for retirement benefits    Reserve for retirement benefits for directors    and corporate auditors    Provision for environmental remediation    Deferred tax liabilities    Other fixed liabilities	23,000 29,130 14,422 103 872 14,395 200		18,000 26,464 13,657 55 505 9,685 629		(5,000) (2,666) (765) (48) (367) (4,710) 429
Total liabilities	237,817	70.9	241,288	72.3	3,471
(Net assets) I. Shareholders' equity	72,540	21.7	76,825	23.0	4,285
Capital stock    Capital surplus    Retained earnings    Treasury stock II. Accumulated gains (losses) from revaluation and translation adjustments	23,974 21,997 26,645 (77) 22,752	7.2 6.6 7.9 0.0 6.8	23,974 21,998 30,952 (100) 13,474	7.2 6.6 9.3 (0.1) 4.0	- 1 4,307 (23) (9,278)
Net unrealized holding gains on securities    Net unrealized gains (losses)    on hedging derivatives    Net unrealized gains (losses)    on factored receivables    Foreign currency translation adjustments III. Minority interests	22,712 (18) (9) 68 2,153	6.8 0.0 0.0 0.0 0.6	13,294 55 (26) 151 2,303	4.0 0.0 (0.0) 0.0 0.7	(9,418) 73 (17) 83 150
Total net assets	97,446	29.1	92,604	27.7	(4,842)
Total liabilities and net assets	335,263	100.0	333,892	100.0	(1,371)

	Previous fiscal year		Current fiscal year		Increase (Decrease)
	FY2006 (From April 1, 2006 to March 31, 2007)		FY2007 (From April 1, 2007 to March 31, 2008)
	Amount	Ratio	Amount	Ratio	Amount
I. Net sales II. Cost of sales    Gross profit	320,427 233,471 86,956	100.0 72.9 27.1	357,233 259,964 97,268	100.0 72.8 27.2	36,806 26,493 10,312
III. Selling, general and administrative expenses    Operating income	77,586 9,369	24.2 2.9	84,099 13,168	23.5 3.7	6,513 3,799
IV. Non-operating income	2,417	0.8	3,514	1.0	1,097
Interest and dividend income    Equity in net income of unconsolidated    subsidiaries and affiliates    Others V. Non-operating expenses	811 431 1,174 5,997	1.9	971 1,714 828 6,790	1.9	160 1,283 (346) 793
Interest expense    Exchange loss    Others    Ordinary income	2,639 937 2,420 5,789	1.8	3,195 1,705 1,890 9,893	2.8	556 768 (530) 4,104
VI. Extraordinary income	10,172	3.2	5,011	1.4	(5,161)
Gain on disposal of fixed assets    Gain from sales of investment securities    Reversal of provision    for environmental remediation    Gain on sale of business    Government subsidies VII. Extraordinary losses	635 - - 9,201 334 3,927	1.2	3,737 993 280 - - 6,596	1.9	3,102 993 280 (9,201) (334) 2,669
Loss on disposal of fixed assets    Retirement allowance expenses    Loss on cancellation of leases    Unrealized loss on investment securities    Product warranty cost    Transfer of provision for product warranty    Loss on impairment of fixed assets    Loss on business liquidation    Losses related to lawsuits    Product compensation expenses    Loss on provision    for environmental remediation    Net income before income taxes	1,280 - 442 - - - 605 - 395 317 885 12,034	3.8	1,594 311 208 213 772 3,262 151 82 - - - 8,308	2.3	314 311 (234) 213 772 3,262 (454) 82 (395) (317) (885) (3,726)
Income taxes - current    Income taxes - deferred    Minority interests in income    Net income	335 5,632 51 6,015	0.1 1.8 0.0 1.9	3,394 (1,108) (114) 6,137	0.9 (0.3) 0.0 1.7	3,059 (6,740) (165) 122

	Previous fiscal year	Current fiscal year
	FY2006 (From April 1, 2006 to March 31, 2007)	FY2007 (From April 1, 2007 to March 31, 2008)
I. Cash flows from operating activities    Net Income before income taxes    Depreciation and amortization    Loss on impairment of fixed assets    Equity in net income of unconsolidated subsidiaries    and affiliates    Foreign exchange gain (loss)    Increase (decrease) in reserve for retirement allowance    Increase in provision for product warranty    Interest and dividend income    Interest expense    Gain on sale of fixed assets    Loss on disposal of fixed assets    Gain on sale of investment securities    Gain on sale of business    Decrease (increase) in trade notes and accounts receivable    Decrease (increase) in deposits on factored trade receivables    Decrease (increase) in inventory    Increase (decrease) in accounts payable    Other, net	12,034 17,881 605 (431) 1,123 (1,648) - (811) 2,639 (635) 1,280 (223) (9,201) (5,309) (998) (10,280) 2,700 7,036	8,308 18,937 151 (1,714) 826 (804) 3,262 (971) 3,195 (3,737) 1,594 (993) - (13,259) (2,371) (446) 9,985 (3,460)
Sub-total	15,760	18,502
Interest and dividends received    Interest paid    Income taxes paid	784 (2,757) (3,206)	1,300 (3,292) (2,015)
Net cash provided by (used in) operating activities	10,580	14,494
II. Cash flows from investing activities    Acquisition of property, plant and equipment    Proceeds from sale of property, plant and equipment    Proceeds from sale and leaseback transactions    Acquisition of intangible fixed assets    Proceeds from sale of intangible fixed assets    Investment in securities    Proceeds from sale and redemption of investment securities    Acquisition of equity in affiliates    Acquisition of consolidated subsidiaries    Sale of consolidated subsidiaries    Purchase of minority interests in consolidated subsidiaries    Other, net	(29,306) 5,493 10,316 (527) 131 (238) 274 (297) (1,067) 4,556 (243) 147	(18,462) 5,037 - (1,345) 45 (1,318) 1,232 (275) - - - (951)
Net cash used in investing activities	(10,761)	(16,037)
III. Cash flows from financing activities    Net Increase (decrease) in short-term loans payable    Net Increase in commercial papers    Proceeds from long-term debt    Repayment of long-term debt    Payment for redemption of corporate bonds    Dividends paid    Dividends paid to minority shareholders    Others, net	15,494 - 4,451 (12,189) - (1,885) (51) (19)	5,254 2,000 7,362 (12,328) (5,000) (1,881) (18) 82
Net cash provided by financing activities	5,799	(4,530)
IV. Effect of foreign exchange rate changes on cash and cash equivalents	(968)	388
V. Net increase (decrease) in cash and cash equivalents VI. Cash and cash equivalents at beginning of year VII. Increase in cash and cash equivalents due to increase in the number of consolidated companies	4,648 11,697 -	(5,683) 16,346 70
VIII. Cash and cash equivalents at end of year	16,346	10,733

© TOYO TIRE & RUBBER CO., LTD.

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