Toyo Tire (5105) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 FY2024 reached ¥420.6 billion, a record high for the third quarter, with operating and ordinary income also at record levels due to strong sales of priority products and favorable forex effects.

• Operating income surged 51.5% year-over-year to ¥76.2 billion.

• Ordinary income increased 20.7% year-over-year to ¥77.8 billion.

• Profit attributable to owners of parent for Q3 FY2024 was ¥55.2 billion, down 2.8% year-over-year.

• Earnings forecasts for FY2024 have been revised upward, reflecting strong business conditions and anticipated extraordinary income.

Financial highlights

• Gross profit improved to ¥177.9 billion from ¥155.8 billion year-over-year.

• Selling, general and administrative expenses decreased to ¥101.7 billion from ¥105.5 billion year-over-year.

• Extraordinary income fell to ¥2.1 billion from ¥15.1 billion year-over-year.

• Total assets increased to ¥664.0 billion as of September 30, 2024.

• Net assets rose to ¥436.7 billion, with a capital ratio of 65.8%.

Outlook and guidance

• FY2024 net sales forecast is ¥560.0 billion (+1.3% year-over-year); operating income forecast is ¥86.0 billion (+11.8% year-over-year, up ¥5.0 billion from previous forecast).

• Profit attributable to owners of parent forecast is ¥60.0 billion (down 17.0% year-over-year, but up ¥10.0 billion from previous forecast).

• Annual dividend per share forecast raised to ¥110 (previously ¥105).