OSAKA, JAPAN - February 3, 2010 - TOYO TIRE & RUBBER CO., LTD. (President and CEO: Kenji Nakakura) announces its Consolidated Business Results through the First Three Quarters for the 2009 Fiscal Year (April 1, 2009 through December 31, 2009) as follows:

• Net Sales: 217,745 million yen (a decrease of 51,611 million yen or 19.2% from the same period for FY 2008).
• Operating Income: 6,352 million yen (compared with an Operating Income of 611 million yen for the same period for FY 2008).
• Ordinary Income: 6,876 million yen (compared with an Ordinary Loss of 1,538 million yen for the same period for FY 2008）.
• Net Income: 420 million yen (compared with a Net Loss of 9,990 million yen for the same period for FY 2008).

Results by Business Units were as follows:

1. Tire Business Unit

The tire business unit posted net sales of 164,083 million yen (a decrease of 33,360 million yen or 16.9 % from the same period for FY 2008), accounting for 75.3% of the company's total net sales.

Spurred by government tax incentives on consumer purchases of hybrid vehicles that boosted automobile manufacture, and the continuing favorable demand for Toyo brand original equipment (OE) tires, Toyo managed to maintain previous year unit sales of its OE tires in the Japanese domestic market, while improving its net sales.

Unit sales of replacement truck and bus tires for the Japanese domestic market were down, reflecting weak sales caused by a severe downturn in the transportation sector. By contrast, unit sales of replacement passenger car tires increased from the previous year as a result of enhanced sales activity, and the introduction of new Summer and Winter products, but net sales declined due to increased competition.

Sales volume and net sales for the overseas replacement tire business fell substantially below year-ago levels due to weak demand in the ever-important U.S. and European markets, despite sales gains in Canada, China and Australia.

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

The DiverTech and other non-tire business units posted net sales of 53,662 million yen (a decrease of 18,251 million yen, or 25.4%, compared with the same period for FY 2008),accounting for 24.7% of the company's total net sales.

In the transportation machinery segment, net sales of the anti-vibration rubber products and motor vehicle seat cushions are trending upwards as a result of a recovery in domestic automobile production, but are still down for the current fiscal year due to a weak first-half.

By contrast, 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 for building construction fell substantially below previous year levels due to weak demand as businesses deferred investments in infrastructure and building projects.

Consolidated Balance Sheets

(Unit: Millions of yen)

	End of current fiscal year December 31, 2009	End of previous fiscal year March 31, 2009
Assets
Current Assets
Cash and time deposits	31,794	18,818
Notes and accounts receivable - trade	73,074	49,735
Merchandise and finished goods	27,547	38,131
Work in process	2,496	2,784
Raw materials and supplies	6,146	8,316
Other current assets	13,552	19,341
Allowance for doubtful receivables	(344)	(370)
Total current assets	154,268	136,757
Fixed Assets
Property, plant and equipment
Buildings and structures, net	33,628	34,718
Machinery, equipment and vehicles, net	40,820	45,535
Other, net	38,960	38,364
Total property, plant and equipment	113,409	118,618
Intangible Assets
Goodwill	363	467
Other intangible assets	2,090	2,373
Total intangible fixed assets	2,453	2,840
Investments and other assets
Investment in securities	32,289	29,727
Other assets	7,943	17,373
Allowance for doubtful receivables	(553)	(547)
Total investments and other assets	39,679	46,552
Total fixed assets	155,542	168,011
Total assets	309,811	304,769

Consolidated Balance Sheets

(Unit: Millions of yen)

	End of current fiscal year December 31, 2009	End of previous fiscal year March 31, 2009
Liabilities
Current liabilities
Notes and accounts payable - trade	58,623	48,458
Short-term bank loans	51,091	63,951
Bonds due within one year	8,000	5,000
Income and enterprise taxes payable	4,808	1,098
Accounts payable - other	6,956	11,686
Provision for product compensation	473	870
Other current liabilities	13,836	11,859
Total current liabilities	143,789	142,924
Long-term liabilities
Bonds	15,000	23,000
Long-term debt	51,071	44,682
Provision for retirement benefits	12,968	14,108
Other provision	218	280
Other long-term liabilities	5,884	8,417
Total long-term liabilities	85,142	90,488
Total liabilities	228,931	233,413
Net assets
Shareholders' equity
Common stock	30,484	27,984
Capital surplus	28,507	26,007
Retained earnings	18,710	18,236
Treasury stock	(102)	(100)
Total shareholders' equity	77,599	72,127
Accumulated gains (losses) from revaluation and translation adjustments
Net unrealized holding gains on securities	6,693	4,518
Unrealized gains (losses) on hedging derivatives	18	(236)
Foreign currency translation adjustments	(5,548)	(6,725)
Total accumulated gains (losses) from revaluation and translation adjustments	1,163	(2,442)
Minority interests in consolidated subsidiaries	2,116	1,670
Total net assets	80,879	71,355
Total liabilities and net assets	309,811	304,769

Consolidated Statements of Income

(Unit: Millions of yen)

	Previous fiscal year	Current fiscal year
	FY2008 (From April 1, 2008 to December 31, 2008)	FY2009 (From April 1, 2009 to December 31, 2009)
Net sales	269,357	217,745
Cost of sales	207,775	162,206
Gross profit	61,581	55,539
Selling, general and administrative expenses	60,970	49,186
Operating income	611	6,352
Non-operating income
Interest income	101	55
Dividend income	790	531
Foreign exchange gains	-	384
Equity in net income of unconsolidated subsidiaries and affiliates	1,094	1,903
Other	779	564
Total non-operating income	2,765	3,439
Non-operating expenses
Interest expense	2,498	1,823
Foreign exchange losses	1,319	-
Other	1,097	1,092
Total non-operating expenses	4,915	2,916
Ordinary income (loss)	(1,538)	6,876
Extraordinary income
Gain on sales of noncurrent assets	223	-
Gain on sales of investment securities	669	1,219
Total extraordinary income	893	1,219
Extraordinary losses
Loss on disposal of property, plant and equipment	649	319
Loss on valuation of investment securities	660	167
Loss on sales of subsidiaries' stocks	-	197
Loss on sales of investments in capital of subsidiaries and affiliates	-	899
Structural improvement expenses	-	484
Loss on provision for product compensation	570	-
Loss on valuation of inventories	1,001	-
Retirement allowance expenses	1,237	-
Loss on litigation	147	-
Total extraordinary losses	4,267	2,069
Net income (loss) before income taxes	(4,912)	6,026
Income taxes	4,811	4,980
Income taxes for prior periods	-	235
Minority interests in income	265	389
Net income (loss)	(9,990)	420

Consolidated Statements of Cash Flows

(Unit: Millions of yen)

	Previous fiscal year	Current fiscal year
	FY2008 (From April 1, 2008 to December 31, 2008)	FY2009 (From April 1, 2009 to December 31, 2009)
Cash flows from operating activities
Income (loss) before income taxes and minority interests	(4,912)	6,026
Depreciation and amortization	14,790	14,152
Increase (decrease) in accrued retirement benefits for employees	927	(1,194)
Increase in provision for product compensation	(1,664)	(396)
Interest and dividend income	(891)	(586)
Interest expense	2,498	1,823
Foreign exchange loss (gain)	431	305
Equity in net income of unconsolidated subsidiaries and affiliates	(1,094)	(1,903)
Loss on disposal of property, plant and equipment	649	319
Loss (gain) on sales of noncurrent assets	(223)	-
Loss (gain) on valuation of investment securities	660	167
Loss (gain) on sale of investment securities	(669)	(1,219)
Loss (gain) on sales of subsidiaries' stocks	-	197
Loss (gain) on sales of investments in capital of subsidiaries and affiliates	-	899
Decrease (increase) in notes and accounts receivable	(17,444)	(22,766)
Decrease (increase) in deposits paid in assignment of receivables	10,649	-
Decrease (increase) in inventories	(7,084)	13,811
Decrease (increase) in notes and accounts payable	(3,964)	9,255
Other, net	2,969	2,533
Sub-total	(4,371)	21,426
Interest and dividends received	1,302	2,316
Interest paid	(2,320)	(1,869)
Income taxes paid	(2,767)	(1,555)
Net cash provided by (used in) operating activities	(8,158)	20,317
Cash flows from investing activities
Additions to property, plant and equipment	(22,557)	(11,543)
Proceeds from sales of property, plant and equipment	1,016	170
Additions to intangible assets	(372)	(181)
Additions to investments in securities	(8,602)	(211)
Proceeds from sale and redemption of investment securities	938	2,438
Proceeds from withdrawal of investment securities	1,296	-
Payments for sales of investments in subsidiaries resulting in change in scope of consolidation	-	(8)
Proceeds from sales of investments in capital of subsidiaries and affiliates	-	8,584
Payments for investments in capital of subsidiaries and affiliates	(614)	-
Other, net	(660)	65
Net cash used in investing activities	(29,556)	(686)
Cash flows from financing activities
Net Increase (decrease) in short-term bank loans	18,699	(17,128)
Net Increase in commercial paper	(2,000)	-
Proceeds from long-term debt	22,564	14,650
Payments of long-term debt	(8,100)	(4,230)
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)
Proceeds from issuance of common stock	7,961	-
Dividends paid	(1,881)	-
Dividends paid to minority shareholders	(49)	(42)
Other, net	(195)	(263)
Net cash provided by (used in) financing activities	41,950	(7,022)
Effect of foreign exchange on cash and cash equivalents	625	367
Net Increase (decrease) in cash and cash equivalents	4,861	12,976
Cash and cash equivalents at beginning of the year	10,733	18,815
Cash and cash equivalents at end of the period	15,594	31,791

© TOYO TIRE & RUBBER CO., LTD.

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