OSAKA, JAPAN - November 9, 2009 - TOYO TIRE & RUBBER CO., LTD. (President and CEO: Kenji Nakakura) announced its consolidated business results for the first-half of FY 2009 (from April 1, 2009 through September 30, 2009) as follows:

• Net Sales: 129,609 million yen (a decrease of 43,211 million yen or 25.0% from the first-half of FY 2008).
• Operating Loss: 1,300 million yen (compared with an Operating Income of 1,177 million yen for the first-half of FY 2008).
• Ordinary Loss: 1,232 million yen (compared with a Net Income of 274 million yen for the first-half of FY 2008).
• Net Loss: 1,976 million yen (compared with a Net Loss of 2,214 million yen for the first-half of FY 2008).

Results by Business Units were as follows:

1. Tire Business Unit

The tire business unit posted first-half net sales of 96,001 million yen (a decrease of 26,510 million yen or 21.6 % from the first-half of FY 2008), accounting for 74.0% of the company's total net sales.

Sales of original equipment tires for the Japanese domestic market increased, spurred by government tax incentives on consumer purchases of hybrid vehicles. However, sales volumes and net sales declined from previous year levels due to a severe downturn in first quarter sales.

Replacement truck and bus tire sales for the Japanese domestic market declined from year-ago levels due to a sharp slowdown in overall market demand. Replacement passenger car tire sales on the other hand increased in volume as a result of enhanced sales activity. As a consequence, total domestic tire sales by both volume and net sales remained unchanged from first-half results for FY 2008.

Overseas, replacement tire sales were mixed, with markets in China and Latin America showing a steady increase in sales volume, while demand in major markets such as North America and Europe were affected by delays in the economic recovery. Overall, total sales volume and net sales fell sharply below levels for the first-half of FY 2008.

2. DiverTech and Other Business Units (Non-Tire Business Units)

The DiverTech and other business units posted net sales of 33,607 million yen (a decrease of 16,701 million yen, or 33.2%, compared to the first-half of FY 2008), accounting for 26.0% of the company's total net sales.

In the transportation machinery segment, net sales of anti-vibration rubber products and motor vehicle seat cushions, which are the mainstays of this segment, fell substantially below first-half sales for FY 2008 as the falloff in domestic car production showed no real signs of recovery. On the other hand, net sales of air springs for railway cars significantly exceeded prior year levels, owing to a steady increase of orders.

In the industrial/building materials segment, net sales of standard anti-vibration rubber products, hose products, rubber-coated fabric products and anti-vibration rubber building construction products were at the same levels as last year. Net sales of waterproofing materials remained unchanged, as the company strengthened its sales activities. However, in the thermal insulation materials segment, net sales fell below last year's levels, due to a significant decrease in new housing and apartment construction starts.

【Consolidated Balance Sheets】

(Unit: Millions of yen)

	End of current fiscal year September 30, 2009	End of previous fiscal year March 31, 2009
Assets
Current Assets
Cash and time deposits	19,877	18,818
Notes and accounts receivable - trade	55,866	49,735
Merchandise and finished goods	34,391	38,131
Work in process	2,479	2,784
Raw materials and supplies	6,900	8,316
Other current assets	15,123	19,341
Allowance for doubtful receivables	(309)	(370)
Total current assets	134,330	136,757
Fixed Assets
Property, plant and equipment
Buildings and structures, net	34,515	34,718
Machinery, equipment and vehicles, net	43,081	45,535
Other, net	39,367	38,364
Total property, plant and equipment	116,964	118,618
Intangible Assets
Goodwill	412	467
Other intangible assets	2,205	2,373
Total intangible fixed assets	2,617	2,840
Investments and other assets
Investment in securities	31,529	29,727
Other assets	17,489	17,373
Allowance for doubtful receivables	(551)	(547)
Total investments and other assets	48,466	46,552
Total fixed assets	168,049	168,011
Total assets	302,379	304,769

【Consolidated Balance Sheets】

(Unit: Millions of yen)

	End of current fiscal year September 30, 2009	End of previous fiscal year March 31, 2009
Liabilities
Current liabilities
Notes and accounts payable - trade	46,250	48,458
Short-term bank loans	60,133	63,951
Bonds due within one year	3,000	5,000
Income and enterprise taxes payable	1,338	1,098
Accounts payable - other	9,826	11,686
Provision for product compensation	610	870
Other provision	54	-
Other current liabilities	12,252	11,859
Total current liabilities	133,467	142,924
Long-term liabilities
Bonds	20,000	23,000
Bonds with subscription rights to shares	300	-
Long-term debt	51,097	44,682
Provision for retirement benefits	13,159	14,108
Other provision	251	280
Other long-term liabilities	5,574	8,417
Total long-term liabilities	90,383	90,488
Total liabilities	223,851	233,413
Net assets
Shareholders' equity
Common stock	30,334	27,984
Capital surplus	28,357	26,007
Retained earnings	16,337	18,236
Treasury stock	(102)	(100)
Total shareholders' equity	74,926	72,127
Accumulated gains (losses) from revaluation and translation adjustments
Net unrealized holding gains on securities	6,153	4,518
Unrealized gains (losses) on hedging derivatives	207	(236)
Foreign currency translation adjustments	(4,779)	(6,725)
Total accumulated gains (losses) from revaluation and translation adjustments	1,580	(2,442)
Minority interests in consolidated subsidiaries	2,021	1,670
Total net assets	78,528	71,355
Total liabilities and net assets	302,379	304,769

【Consolidated Statements of Income】

(Unit: Millions of yen)

	Previous fiscal year	Current fiscal year
	FY2008 (From April 1, 2008 to September 30, 2008)	FY2009 (From April 1, 2009 to September 30, 2009)
Net sales	172,820	129,609
Cost of sales	130,340	98,622
Gross profit	42,480	30,987
Selling, general and administrative expenses	41,303	32,287
Operating income (loss)	1,177	(1,300)
Non-operating income
Interest income	61	38
Dividend income	462	378
Equity in net income of unconsolidated subsidiaries and affiliates	792	1,660
Other	562	412
Total non-operating income	1,878	2,490
Non-operating expenses
Interest expense	1,630	1,237
Other	1,151	1,184
Total non-operating expenses	2,781	2,422
Ordinary income (loss)	274	(1,232)
Extraordinary income
Gain on sales of noncurrent assets	223	-
Gain on sales of investment securities	669	1,219
Total extraordinary income	892	1,219
Extraordinary losses
Loss on disposal of property, plant and equipment	505	239
Structural improvement expenses	-	415
Loss on valuation of investment securities	134	-
Loss on provision for product compensation	570	-
Loss on valuation of inventories	1,001	-
Retirement allowance expenses	1,237	-
Loss on litigation	126	-
Total extraordinary losses	3,576	654
Net income (loss) before income taxes	(2,409)	(667)
Income taxes	(167)	944
Income taxes for prior periods	-	235
Minority interests in loss (income) of consolidated subsidiaries	(27)	128
Net income (loss)	(2,214)	(1,976)

【Consolidated Statements of Cash Flows】

(Unit: Millions of yen)

	Previous fiscal year	Current fiscal year
	FY2008 (From April 1, 2008 to September 30, 2008)	FY2009 (From April 1, 2009 to September 30, 2009)
Cash flows from operating activities
Income (loss) before income taxes and minority interests	(2,409)	(667)
Depreciation and amortization	9,720	9,360
Increase (decrease) in accrued retirement benefits for employees	995	(998)
Increase in provision for product compensation	(1,014)	(260)
Interest and dividend income	(523)	(417)
Interest expense	1,630	1,237
Foreign exchange loss (gain)	77	678
Equity in net income of unconsolidated subsidiaries and affiliates	(792)	(1,660)
Loss on disposal of property, plant and equipment	505	239
Loss (gain) on sales of noncurrent assets	(223)	-
Loss (gain) on valuation of investment securities	134	-
Gain on sale of investment securities	(669)	(1,219)
Decrease (increase) in notes and accounts receivable	(6,578)	(4,369)
Decrease (increase) in deposits paid in assignment of receivables	10,580	-
Decrease (increase) in inventories	(8,357)	7,150
Decrease (increase) in notes and accounts payable	(9,268)	(3,690)
Other, net	(2,312)	1,605
Sub-total	(8,504)	6,989
Interest and dividends received	947	2,157
Interest paid	(1,496)	(1,364)
Income taxes paid	(1,840)	(848)
Net cash provided by (used in) operating activities	(10,894)	6,933
Cash flows from investing activities
Additions to property, plant and equipment	(11,722)	(7,692)
Proceeds from sales of property, plant and equipment	1,028	19
Additions to intangible assets	(288)	(138)
Additions to investments in securities	(321)	(207)
Proceeds from sale and redemption of investment securities	938	2,438
Proceeds from withdrawal of investment securities	1,288	-
Other, net	(124)	22
Net cash used in investing activities	(9,202)	(5,558)
Cash flows from financing activities
Net Increase (decrease) in short-term bank loans	7,266	(6,045)
Net Increase in commercial paper	(2,000)	-
Proceeds from long-term debt	15,847	8,000
Payments of long-term debt	(4,282)	(2,174)
Proceeds from issuance of bonds	9,950	-
Proceeds from issuance of bonds with subscription rights to shares	-	4,990
Payments of redemption of bonds	(5,000)	(5,000)
Dividends paid	(1,881)	-
Dividends paid to minority shareholders	(49)	(42)
Other, net	(103)	(169)
Net cash provided by (used in) financing activities	19,747	(441)
Effect of foreign exchange on cash and cash equivalents	(236)	125
Net Increase (decrease) in cash and cash equivalents	(584)	1,058
Cash and cash equivalents at beginning of the year	10,733	18,815
Cash and cash equivalents at end of the period	10,148	19,874

© TOYO TIRE & RUBBER CO., LTD.

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