Announcement of Revised Performance Forecast
(November 11, 2008)
OSAKA, JAPAN . November 11, 2008 . TOYO TIRE & RUBBER CO., LTD. has made the following revisions to its consolidated performance forecasts, expected year-end dividends and non-consolidated performance forecasts for the fiscal year ending March 31, 2009 (April 1, 2008 to March 31, 2009), which were released on August 12, 2008 and May 13, 2008 respectively.
| Net sales | Operating income |
Ordinary income |
Net income |
Net income per share (yen) |
|
| Previously announced forecast (A) (Released on August 12, 2008) |
371,000 | 5,800 | 3,900 | 1,400 | 6.70 |
| Revised forecast (B) | 349,000 | 1,000 | (800) | (2,600) | (11.87) |
| Difference (B-A) | (22,000) | (4,800) | (4,700) | (4,000) | - |
| Percentage change | (5.9%) | (82.8%) | - | - | - |
| (Ref.) Results from the fiscal year ended March 31, 2008 |
357,233 | 13,168 | 9,893 | 6,137 | 29.36 |
| Net sales | Operating income |
Ordinary income |
Net income |
Net income per share (yen) |
|
| Previously announced forecast (A) (Released on May 13, 2008) |
251,000 | (1,200) | 900 | 300 | 1.44 |
| Revised forecast (B) | 249,000 | (4,900) | (2,800) | (3,300) | (15.07) |
| Difference (B-A) | (2,000) | (3,700) | (3,700) | (3,600) | - |
| Percentage change | (0.8%) | - | - | - | - |
| (Ref.) Results from the fiscal year ended March 31, 2008 |
246,221 | 2,989 | 3,277 | 451 | 2.16 |
3. Reasons for the revisions
(The consolidated performance forecasts)
Operating income and ordinary income are expected to fall below its previously announced (August 12, 2008) forecasts, mainly due to the decrease of sales volume and net sales as a result of the global economic slowdown. The financial crisis in the U.S and the steep appreciation of the yen are also major factors contributing to this decrease in sales. Also, net income is expected to fall below its previously announced forecasts, due to a decrease in estimated extraordinary gain and ordinary income.
(The non-consolidated performance forecast)
Operating income, ordinary income and net income are expected to fall below its previously announced (May 13, 2008) forecasts, due to the same reasons as the revision of the consolidated performance forecasts.
Also, assumed exchange rate is 1$=100 yen and 1 Euro=130 yen.
Note: The above earnings estimates are projected statements, which are based on our current assumptions in light of the information currently available to us and involve potential risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause our actual results to be materially different from these estimates.
(1) Contents of the revision
The revision of expected dividend per share (April 1, 2008 to March 31, 2009)
| Dividend per share | |||
| Date of record | At the end of the 2nd Quarter | At the end of FY2008 | For FY2008 |
| Previously announced forecast (Released on August 12, 2008) |
- | 9 | 9 |
| Announced forecast | - | 0 | 0 |
| (Ref.) Results from the fiscal year ended March 31, 2008 | - | 9 | 9 |
Reasons for the revisions
It is the Company’s basic policy to strike the right dividend based on a long-term perspective and stable earnings structure. Management measures have been taken such as cost rationalization, a price increase, and a decrease of remuneration for directors. However, it is unfortunately expected to post net loss, owing to very stringent business conditions such as a significant increase of raw material prices, demand decrease on a global level and the steep appreciation of the yen. Therefore, the forecast for the year-end dividend is expected to be revised from 9 yen per share to 0 yen.
The Company would like to realize improvement in business performance with implementation of possible measures speedily and vigorously including the reinforcement of businesses, structural reforms, investment reviews, and cost containments for the resumption of the dividend. We earnestly hope that you will kindly understand our situation.