OSAKA, JAPAN - August 6, 2009 . TOYO TIRE & RUBBER CO., LTD. (President and CEO:Kenji Nakakura) has announced its consolidated business results for the first quarter of FY 2009 (from April 1, 2009 to June 30, 2009). Compared to the same period of FY2008, net sales decreased to 62,373 million yen (down 24,266 million yen or 28.0%), operating loss was 3,054 million (operating income was 1,259 million in the first quarter of FY2008) and ordinary loss was 2,943 million yen (ordinary income was 1,205 million yen in the first quarter of FY2008). Net loss was 2,620 million yen (net loss of the first quarter of FY2008 was 1,438 million yen).

Results by business segment are as follows:

1. Tires
The tire segment posted net sales of 47,151 million yen (down 14,989 million or 24.1% compared to the same period of FY2008), accounting for 75.5% of total net sales. Regarding original equipment tires for domestic market, there are signs of recovery in some types of cars, but car production is still flagging. Therefore, sales fell drastically below the level of the same period of FY2008.
Sales volumes of replacement tires for the domestic market exceeded the level of the first quarter of FY2008 and net sales was on par with the same period of FY2008. This is because sales did well with our activities for sales expansion. In addition to this reason, sales temporarily grew prior to the price increase due to last minute purchases by clients/customers. However, we saw a rebound effect following the price increase, with sales slumping due to the diminishing of this temporary demand.
Meanwhile, overseas sales volumes and net sales in North American, Middle Eastern and South East Asian markets sharply fell below the levels of the first quarter of FY2008. In European market, sales volumes and net sales drastically fell below the level of the same period of FY2008, owing to sluggish sales in developing countries.

2. DT (DiverTech) and other business segments
DT and other business segments posted net sales of 15,221 million yen (down 9,276 million yen or 37.9% compared to the same period of FY2008), accounting for 24.5% of total net sales. Regarding the transportation machinery field, there are signs of recovery in some types of cars, but car production is still flagging. Therefore, net sales of anti-vibration rubber products and seat cushions for automobiles, which is the mainstay of this segment, drastically fell below the same period of a year earlier. However, net sales of air springs for railway cars significantly exceeded the level of the first quarter of FY2008, owing to a steady increase of incoming orders. In the fields of industrial/building materials, net sales of standard anti-vibration rubber, rubber coated fabric and anti-vibration rubber for construction sharply fell below compared to the same period of FY2008. On the other hand, net sales of urethane products for roads significantly exceeded the level of the first quarter of FY2008. In the field of thermal insulation/waterproofing materials, net sales of liquid concentrate of rigid polyurethane was the same level as the first quarter of FY2008. However, net sales of thermal insulation applications for livestock barn fell below the same quarter of the year earlier, due to a sagging market.

【Consolidated Balance Sheets】

(Unit: Millions of yen)

	End of current fiscal year June 30, 2009	End of previous fiscal year March 31, 2009
Assets
Current Assets
Cash and time deposits	17,007	18,818
Notes and accounts receivable - trade	52,719	49,735
Short-term investment in securities	54	44
Merchandise and finished goods	39,594	38,131
Work in process	2,283	2,784
Raw materials and supplies	7,772	8,316
Other current assets	14,786	19,296
Allowance for doubtful receivables	(411))	(370)
Total current assets	133,807	136,757
Fixed Assets
Property, plant and equipment
Buildings and structures, net	35,003	34,718
Machinery, equipment and vehicles, net	44,742	45,535
Other, net	38,076	38,364
Total property, plant and equipment	117,821	118,618
Intangible Assets
Goodwill	436	467
Other intangible assets	2,294	2,373
Total intangible fixed assets	2,731	2,840
Investments and other assets
Investment in securities	32,595	29,727
Other assets	18,250	17,373
Allowance for doubtful receivables	(539)	(547)
Total investments and other assets	50,307	46,552
Total fixed assets	170,859	168,011
Total assets	304,667	304,769

【Consolidated Balance Sheets】

(Unit: Millions of yen)

	End of current fiscal year June 30, 2009	End of previous fiscal year March 31, 2009
Liabilities
Current liabilities
Notes and accounts payable. trade	48,561	48,458
Short-term bank loans	65,319	63,951
Bonds due within one year	3,000	5,000
Income and enterprise taxes payable	681	1,098
Accounts payable. other	7,332	11,686
Provision for product compensation	729	870
Other current liabilities	13,422	11,859
Total current liabilities	139,047	142,924
Long-term liabilities
Bonds	20,000	23,000
Long-term debt	51,139	44,682
Provision for retirement benefits	13,858	14,108
Other provision	267	280
Other long-term liabilities	6,695	8,417
Total long-term liabilities	91,960	90,488
Total liabilities	231,007	233,413
Net assets
Shareholders' equity
Common stock	27,984	27,984
Capital surplus	26,007	26,007
Retained earnings	15,693	18,236
Treasury stock	(101)	(100)
Total shareholders' equity	69,583	72,127
Accumulated gains (losses) from revaluation and translation adjustments
Net unrealized holding gains on securities	6,796	4,518
Unrealized gains (losses) on hedging derivatives	4	(236)
Foreign currency translation adjustments	(4,535)	(6,725)
Total accumulated gains (losses) from revaluation and translation adjustments	2,265	(2,442)
Minority interests in consolidated subsidiaries	1,811	1,670
Total net assets	73,660	71,355
Total liabilities and net assets	304,667	304,769

【Consolidated Statements of Income】

(Unit: Millions of yen)

	Previous fiscal year	Current fiscal year
	FY2008 (From April 1, 2008 to June 30, 2008)	FY2009 (From April 1, 2009 to June 30, 2009)
Net sales	86,639	62,373
Cost of sales	65,013	49,848
Gross profit	21,625	12,524
Selling, general and administrative expenses	20,365	15,578
Operating income (loss)	1,259	(3,054)
Non-operating income
Interest income	17	18
Dividend income	451	337
Equity in net income of unconsolidated subsidiaries and affiliates	312	542
Other	538	283
Total non-operating income	1,320	1,182
Non-operating expenses
Interest expense	863	625
Other	511	446
Total non-operating expenses	1,375	1,071
Ordinary income (loss)	1,205	(2,943)
Extraordinary income
Gain on sales of investment securities	-	1,072
Total extraordinary income	-	1,072
Extraordinary losses
Loss on disposal of property, plant and equipment	195	163
Loss on impairment of property, plant and equipment	-	143
Loss on valuation of inventories	1,001	-
Retirement allowance expenses	1,237	-
Total extraordinary losses	2,435	307
Net income (loss) before income taxes	(1,230)	(2,178)
Income taxes	250	119
Income taxes for prior periods	-	235
Minority interests in loss (income) of consolidated subsidiaries	(42)	87
Net income (loss)	(1,438)	(2,620)

【Consolidated Statements of Cash Flows】

(Unit: Millions of yen)

	Previous fiscal year	Current fiscal year
	FY2008 (From April 1, 2008 to June 30, 2008)	FY2009 (From April 1, 2009 to June 30, 2009)
Cash flows from operating activities
Income (loss) before income taxes and minority interests	(1,230)	(2,178)
Depreciation and amortization	4,776	4,705
Loss on impairment of fixed assets	-	143
Increase (decrease) in accrued retirement benefits for employees	1,128	(264)
Increase in provision for product compensation	(691)	(140)
Interest and dividend income	(469)	(356)
Interest expense	863	625
Foreign exchange loss (gain)	(502)	279
Equity in net income of unconsolidated subsidiaries and affiliates	(312)	(542)
Loss on disposal of property, plant and equipment	195	163
Gain on sales of investment securities	-	(1,072)
Decrease (increase) in notes and accounts receivable	(7,534)	(1,489)
Decrease (increase) in deposits paid in assignment of receivables	10,834	-
Decrease (increase) in inventories	(4,653)	1,289
Decrease (increase) in notes and accounts payable	1,683	(1,113)
Other, net	878	275
Sub-total	4,966	324
Interest and dividends received	829	593
Interest paid	(951)	(743)
Income taxes paid	(1,384)	(928)
Net cash provided by (used in) operating activities	3,460	(753)
Cash flows from investing activities
Additions to property, plant and equipment	(7,201)	(3,859)
Proceeds from sales of property, plant and equipment	42	18
Additions to intangible assets	(58)	(72)
Additions to investments in securities	(2)	(3)
Proceeds from sale and redemption of investment securities	-	2,018
Other, net	370	22
Net cash used in investing activities	(6,850)	(1,875)
Cash flows from financing activities
Net Increase (decrease) in short-term bank loans	4,157	(1,238)
Net Increase in commercial paper	4,500	-
Proceeds from long-term debt	7,711	7,000
Payments of long-term debt	(1,031)	(971)
Payments of redemption of bonds	(5,000)	(5,000)
Dividends paid	(1,881)	-
Dividends paid to minority shareholders	(49)	(42)
Other, net	(53)	(86)
Net cash provided by (used in) financing activities	8,352	(339)
Effect of foreign exchange on cash and cash equivalents	(1,098)	1,156
Net Increase (decrease) in cash and cash equivalents	3,863	(1,811)
Cash and cash equivalents at beginning of the year	10,733	18,815
Cash and cash equivalents at end of the period	14,597	17,003

© TOYO TIRE & RUBBER CO., LTD.

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