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MarketScreener Homepage  >  Equities  >  Tokyo Stock Exchange  >  Toyo Tire Corporation    5105   JP3610600003

TOYO TIRE CORPORATION

(5105)
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Toyo Tire : Consolidated Business Performance for the Second Quarter of the Fiscal Year Ending December 31, 2020

08/06/2020 | 10:34pm EST

Consolidated Business Performance for the Second Quarter of the Fiscal Year Ending December 31, 2020

7 Aug, 2020

Major Topics

Consolidated Business Results for the Second Quarter of the Fiscal Year Ending December 31, 2020 (FY2020)

Consolidated Business Outlook for the Fiscal Year Ending December 31, 2020 (FY2020)

Combatting the Novel Coronavirus Disease (COVID-19)

The forward-looking statements contained in these business outlooks and plans are based on information available at the current time and contain potential risks and uncertainties. Therefore, please keep in mind that actual results may, due to a variety of factors, differ from those expressed in the forward-looking statements.

Consolidated Business Results for the Second Quarter of FY2020

Year-on-

(Unit: millions of

FY2020 2Q

FY2019 2Q

Year-on-

Year

yen

Results

Results

Year Change

Change

Net Sales

150,586

178,558

(27,971)

(15.7)

Operating

7,928

15,344

Income

(7,415)

(48.3)

5.3

8.6

Profit Ratio

Ordinary

4,379

13,852

(9,473)

(68.4)

Income

Profit

520

7,521

Attributable to

(7,001)

(93.1)

Owners of Parent

Dividends

20 Yen

20 Yen

0 Yen

per Share

Profit Attributable to Owners of Parent: Profit attributable to parent company shareholders

Forex

USD

109 Yen

110 Yen

(1 Yen)

Rate

EUR

120 Yen

125 Yen

(5 Yen)

FY2020

Year-on-

FY2020

Year-on-

Jan-Mar

Year

Apr-Jun

Year

Results

Change

Results

Change

82,094

(8,049)

68,492

(19,922)

6,936

(3,238)

992

(4,177)

8.4

1.4

3,737

(5,669)

642

(3,803)

2,141

(3,494)

(1,621)

(3,506)

Forex Rate Sensibility 2020

USD 0.55 Billion Yen/Year

EUR 0.10 Billion Yen/Year

Impact of 1 yen fluctuation on operating income

3

Consolidated Business Results for the Second Quarter of FY2020

Factors Contributing to Changes in Operating Income

FY2019 2Q

Changes

FY2020 2Q

Results

Results

15.3

(7.4)

7.9

(12.5)

6.1

(1.0)

billions of yen

Decreasing factor

Increasing factor

Decreasing factor

Tires

Tires

Others

Sales

Production

Forex

SGA

Raw

Change in

Tires

Automotive

Depreciation

Other

Total

Factors

Cost

Rate

Expenses

Materials

Subtotal

Parts

Method

Jan-Mar

(4.2)

(0.8)

(0.1)

(0.6)

1.8

0.7

(3.1)

(0.1)

(0.0)

(3.2)

Apr-Jun

(2.5)

(4.1)

(0.8)

1.6

1.3

1.3

(3.3)

(0.9)

(0.0)

(4.2)

Tires (6.4)

Others

(1.0)

4

Impact of Seismic Isolation Rubber Measures on Performance in the Second Quarter of FY2020

(Unit:

1Q

2Q

Total

millions of yen)

(A)

(B)

(A+B)

For 55

buildings

For 99

buildings

Charges

590

630

1,220

Compensation

466

64

530

costs, etc.

Total

1,056

695

1,751

(For Reference)

FY2015

FY2016

FY2017

FY2018

FY2019

Full-Year

Full-Year

Full-Year

Full-Year

Full-Year

Results

Results

Results

Results

Results

23,063

17,034

608

8,794

7,386

35,068

12,281

2,360

12,104

10,418

3,156

4,858

3,365

4,119

4,260

2,590

1,516

645

46,674

66,781

18,637

17,529

4,010

*55 buildings : disclosed on March 13, 2015, 99 buildings : disclosed on April 21, 2015

Breakdown of Calculation

The company did not post seismic isolation product costs or renovation/construction costs for changes to

1Q of FY2020

the 55 buildings and 99 buildings.

A

The company posted approx. 500 million yen in compensation costs and approx.

600 million yen in charges (primarily, in payroll for the seismic isolation rubber task force, etc.).

The company did not post seismic isolation product costs or renovation/construction costs for changes to

2Q of FY2020

the 55 buildings and 99 buildings.

B

The company posted approx. 100 million yen in compensation costs and approx.

600 million yen in charges (primarily, in payroll for the seismic isolation rubber task force, etc.).

From 3Q of

As at the present time it is difficult to reasonably estimate the amount, in the event that costs arise in the

FY2020 onward

future, an additional reserve for product warranties may be posted depending upon the progress of measures.

5

Consolidated Business Results by Business Segment for the Second Quarter of FY2020

●Net Sales

(Unit: millions of

FY2020 2Q

FY2019 2Q

Year-on-Year

Year-on-

FY2020

Year-on-

FY2020

Year-on-

Year

Jan-Mar

Year

Apr-Jun

Year

yen)

Results

Results

Change

Change

Results

Change

Results

Change

Tires

134,430

155,634

(21,204)

(13.6%)

72,297

(6,461)

62,133

(14,742)

Automotive Parts

16,130

22,888

(6,758)

(29.5%)

9,782

(1,586)

6,347

(5,172)

Other

65

75

(10)

(13.3%)

35

(2)

29

(8)

Adjustments

(39)

(40)

1

(21)

2

(18)

Total

150,586

178,558

(27,971)

(15.7%)

82,094

(8,049)

68,492

(19,922)

* Net sales include intersegment internal net sales or transfers

●Operating Income

(Unit: millions of

FY2020 2Q

FY2019 2Q

Year-on-Year

Year-on-

FY2020

Year-on-

FY2020

Year-on-

Year

Jan-Mar

Year

Apr-Jun

Year

yen)

Results

Results

Change

Change

Results

Change

Results

Change

Tires

9,733

16,114

(6,381)

(39.6)

7,399

(3,143)

2,333

(3,238)

Profit Ratio

7.2

10.4

10.2

3.8

Automotive Parts

(1,805)

(756)

(1,049)

(474)

(92)

(1,330)

(957)

Profit Ratio

11.2%)

3.3%)

(4.8)

(20.1)

Other

20

5

15

400.0

22

(3)

(1)

19

Adjustments

(20)

(19)

0

(11)

0

(9)

(2)

Total

7,928

15,344

(7,415)

(48.3)

6,936

(3,238)

992

(4,177)

* Segment profit adjustment amounts include intersegment eliminations

6

Consolidated Business Results by Geographic Area Segment for the Second Quarter of FY2020

●Net Sales

FY2020 2Q

FY2019 2Q

Year-on-Year

Year-on-

FY2020

Year-on-

FY2020

Year-on-

(Unit: millions of yen)

Year

Jan-Mar

Year

Apr-Jun

Year

Results

Results

Change

Change

Results

Change

Results

Change

Japan

42,730

51,857

(9,127)

(17.6)

23,908

(1,875)

18,822

(7,251)

North America

81,493

92,910

(11,416)

(12.3)

41,685

(4,392)

39,807

(7,024)

Other

26,362

33,790

(7,427)

(22.0)

16,500

(1,781)

9,862

(5,646)

Eliminations or

Corporate

Total

150,586

178,558

(27,971)

(15.7)

82,094

(8,049)

68,492

(19,922)

●Operating Income

* Net sales do not include intersegment internal net sales or transfers

Year-on-

FY2020

Year-on-

FY2020

Year-on-

(Unit: millions of

FY2020 2Q

FY2019 2Q

Year-on-Year

Year

Jan-Mar

Year

Apr-Jun

Year

yen)

Results

Results

Change

Change

Results

Change

Results

Change

Japan

2,449

12,630

(10,181)

(80.6)

5,871

(1,243)

(3,421)

(8,937)

North America

4,143

2,869

1,274

44.4

1,500

(985)

2,643

2,259

Other

803

2,316

(1,512)

(65.3)

803

(674)

0

(837)

Eliminations or

532

(2,471)

3,004

(1,238)

(334)

1,770

3,338

Corporate

Total

7,928

15,344

(7,415)

(48.3)

6,936

(3,238)

992

(4,177)

7

Revised Outline of Consolidated Business Outlook for the Full FY2020

Revised Full-

Full-Year

Year-on-

(Unit: millions of

Year Outlook

Year-on-

Year

Results for

yen

for

Year Change

Change

FY2019

FY2020

Net Sales

330,000

377,457

(47,457)

(12.6)

Operating

30,000

38,447

Income

(8,447)

(22.0)

9.1

10.2

Profit Ratio

Ordinary

25,400

36,645

(11,245)

(30.7)

Income

Profit

14,000

24,482

Attributable to

(10,482)

(42.8)

Owners of Parent

Dividends

45 Yen

45 Yen

0 Yen

per Share

Profit Attributable to Owners of Parent: Profit attributable to parent company shareholders

Forex

USD

107 Yen

109 Yen

(2 Yen)

Rate

EUR

120 Yen

123 Yen

(3 Yen)

FY2020 2Q

Year-on-

Revised

Year-on-

Year

Outlook for

Year

Results

Change

FY2020 2H

Change

150,586

(27,971)

179,413

(19,485)

7,928

(7,415)

22,071

(1,032)

5.3

12.3

4,379

(9,473)

21,020

(1,772)

520

(7,001)

13,479

(3,481)

Forex Rate Sensibility 2020

USD 0.55 Billion Yen/Year

EUR 0.10 Billion Yen/Year

Impact of 1 yen fluctuation on operating income

8

Revised Outlook for the Full FY2020

Factors Contributing to Changes in Operating Income

FY2019

Full-Year Results

38.4

billions of yen

Changes

FY2020

Full-Year Outlook

(8.4)

30.0

(24.0)

15.6

(0.0)

Decreasing factor

Increasing factor

Decreasing factor

Tires

Tires

Others

Sales

Production

Forex

SGA

Raw

Change in

Tires

Automotive

Depreciation

Other

Total

Factors

Cost

Rate

Expenses

Materials

Subtotal

Parts

Method

2Q

(6.7)

(4.9)

(0.9)

1.0

3.1

2.0

(6.4)

(1.0)

(0.0)

(7.4)

Results

2H

(10.2)

0.2

(1.5)

1.8

4.9

2.7

(2.0)

1.0

0.0

(1.0)

Outlook

Others

Tires

(8.4)

(0.0)

9

Revised Consolidated Business Outlook by Business Segment for the Full FY2020

●Net Sales

Revised Full-

Full-Year

Year-on-

Year-on-

Revised

Year-on-

(Unit: millions of

Year Outlook

Year-on-Year

Year

FY2020 2Q

Results for

Year

Outlook for

Year

yen)

for

Change

Change

Results

FY2019

Change

FY2020 2H

Change

FY2020

Tires

295,000

332,838

(37,838)

(11.4)

134,430

(21,204)

160,569

(16,634)

Automotive Parts

34,900

44,551

(9,651)

(21.7)

16,130

(6,758)

18,770

(2,893)

Other

100

146

(46)

65

(10)

35

(36)

Adjustments

0

(79)

79

(39)

1

39

78

Total

330,000

377,457

(47,457)

(12.6)

150,586

(27,971)

179,413

(19,485)

●Operating Income

* Net sales include intersegment internal net sales or transfers

Revised Full-

Full-Year

Year-on-

Year-on-

Revised

Year-on-

(Unit: millions of

Year Outlook

Year-on-Year

Year

FY2020 2Q

Results for

Year

Outlook for

Year

yen)

for

Change

Change

Results

FY2019

Change

FY2020 2H

Change

FY2020

Tires

33,000

41,393

(8,393)

(20.3)

9,733

(6,381)

23,266

(2,012)

Profit Ratio

11.2

12.4

7.2

13.9

Automotive Parts

(3,000)

(2,919)

(80)

(1,805)

(1,049)

(1,194)

969

Profit Ratio

8.6%)

6.6%)

(11.2)

6.4%)

Other

0

14

(14)

20

15

(20)

(29)

Adjustments

0

(39)

39

(20)

0

20

39

Total

30,000

38,447

(8,447)

(22.0)

7,928

(7,415)

22,071

(1,032)

* Segment profit adjustment amounts include intersegment eliminations 10

Revised Consolidated Business Outlook by Geographic Area Segment for the Full FY2020

●Net Sales

Revised Full-

Full-Year

Year-on-

Year-on-

Revised

Year-on-

Year Outlook

Year-on-Year

Year

FY2020 2Q

(Unit: millions of yen)

Results for

Year

Outlook for

Year

for

Change

Change

Results

FY2019

Change

FY2020 2H

Change

FY2020

Japan

99,100

113,473

(14,373)

(12.7)

42,730

(9,127)

56,369

(5,246)

North America

176,100

197,698

(21,598)

(10.9)

81,493

(11,416)

94,606

(10,182)

Other

54,800

66,286

(11,486)

(17.3)

26,362

(7,427)

28,437

(4,059)

Eliminations or

Corporate

Total

330,000

377,457

(47,457)

(12.6)

150,586

(27,971)

179,413

(19,486)

●Operating Income

* Net sales include intersegment internal net sales or transfers

Revised Full-

Full-Year

Year-on-

Year-on-

Revised

Year-on-

Year Outlook

Year-on-Year

Year

FY2020 2Q

(Unit: millions of yen)

Results for

Year

Outlook for

Year

for

Change

Change

Results

FY2019

Change

FY2020 2H

Change

FY2020

Japan

20,500

27,039

(6,539)

(24.2)

2,449

(10,181)

18,051

3,642

North America

9,400

8,378

1,022

12.2

4,143

1,274

5,257

(252)

Other

1,900

3,610

(1,710)

(47.4)

803

(1,512)

1,096

(197)

Eliminations or

(1,800)

(580)

(1,220)

532

3,004

(2,332)

(4,223)

Corporate

Total

30,000

38,447

(8,447)

(22.0)

7,928

(7,415)

22,071

(1,032)

11

Combatting the Novel Coronavirus Disease (COVID-19)

Changes in our key markets

  • After hitting bottom in April, tire demand in the replacement market has begun to recover in some regions, including North America. As auto manufacturers have resumed production, the size of the demand decline for tires for new vehicles has been shrinking.
  • In anticipation of life "with corona," various structural changes are taking place here and there: resumption of economic activities while the end of COVID-19 is still not in sight; "work from home" and new work styles emerging; commuters' shift from public transportation to private cars.
  • Souring U.S.-China relationship has increased likelihood of anti-dumping duties being imposed.

Preparations to outperform the market in the demand recovery phase

  • All tire and auto components production bases across the world back to normal operation.
  • Building a supply structure with an appropriate level of inventory in mind to ensure timely supply that matches demand and capture sales opportunities without fail.
  • Steadily expanding sales of new products launched on key markets and boosting their demand, in addition to returning to the previous sales volumes in each market.

Efforts to ensure business continuity

  • Steadily implementing earnings structure reforms (re-examining capex plans, cost reduction and rationalization)
  • Pursuing financial activities with a conservative scenario in mind to secure necessary funds for equipment, etc.

12

(For Reference)

Changes in Tire Production (New Rubber Volume)

Unit: 1,000 Tons * Bar graph values show tire production volume composition ratio by region ()

70.0

60.0

18.2%

18.5%

18.3%

18.2%

17.9%

50.0

28.7%

27.3%

29.1%

29.0%

40.0

31.7%

Asia

30.0

21.3%

20.0

23.2%

N.Ameri

53.1%

54.2%

52.6%

52.9%

50.4%

ca

10.0

55.5%

Japan

0.0

FY2019 Jan-Mar

FY2019 Apr-Jun FY2019 Jul-Sep

FY2019 Oct-Dec FY2020 Jan-Mar

FY2020 Apr-Jun

FY2019

FY2020

(Unit: 1,000 Tons)

1H

2H

Full Year

1H

Jan-Mar

Apr-Jun

Jan-Jun

Jul-SepOct-Dec

Jul-Dec

Jan-Dec

Jan-Mar

Apr-Jun

Jan-Jun

Results

Results

Results

Results

Results

Results

Results

Results

Results

Results

Japan

32.7

33.1

65.7

32.2

32.7

64.9

130.6

29.1

19.2

48.3

N. America

17.7

16.7

34.4

17.8

17.9

35.7

70.1

18.3

8.0

26.3

Asia

11.2

11.3

22.5

11.2

11.2

22.3

44.9

10.3

7.4

17.7

Total

61.6

61.1

122.7

61.2

61.7

122.9

245.6

57.7

34.5

92.2

13

(For Reference)

Year-on-Year Change in Tire Sales Quantity by Region

* Year-on-Year when the same period of the previous year = 100

FY2019

FY2020

(Unit: )

1H

2H

Full Year

1H

Jan-Mar

Apr-Jun

Jan-Jun

Jul-SepOct-Dec

Jul-Dec

Jan-Dec

Jan-Mar

Apr-Jun

Jan-Jun

Results

Results

Results

Results

Results

Results

Results

Results

Results

Results

OE Total

112

100

106

107

83

94

100

82

38

62

RE Japan

105

112

109

126

87

103

105

98

89

93

RE Overseas

95

93

94

103

98

101

97

95

82

89

Of which

100

91

95

105

98

102

99

88

98

93

N. America

Of which

92

84

89

105

91

99

93

100

70

88

Europe

Of which

89

105

97

89

105

96

97

103

61

80

SE Asia

Total

100

97

98

107

93

100

99

93

75

84

14

(For Reference)

Price Changes in Major Raw Materials

Market Price Trends

Change in Dubai Crude Oil and Domestic Naphtha Prices

Change in Natural Rubber TSR #20 Prices (SICOM)

USDbbl

1,000 Yenkl

USCkg

125

100

300

Dubai Crude Oil

Natural Rubber

TSR#20

100

Domestic Naphtha

80

250

200

75

60

150

50

40

100

25

20

50

0

16/12

17/9

17/12

18/12

19/12

0

0

16/12

17/12

18/12

19/12

16/3

16/6

16/9

17/3

17/6

18/3

18/6

18/9

19/3

19/6

19/9

20/3

20/6

16/3

16/6

16/9

17/3

17/6

17/9

18/3

18/6

18/9

19/3

19/6

19/9

20/3

20/6

Price Changes & Impact by Raw Material (Operating Income Basis)

(Unit: billions of yen)

FY2019

FY2020

Raw Material

1H

2H

Full Year

1H

Jan-MarApr-Jun

Jan-Jun

Jul-SepOct-Dec

Jul-Dec

Jan-Dec

Jan-MarApr-Jun

Jan-Jun

Results

Results

Results

Results

Results

Results

Results

Results

Results

Results

Natural Rubber

0.4

0.1

0.5

(0.1)

(0.1)

(0.2)

0.3

(0.0)

0.0

0.0

Petroleum Products

(0.9)

0.0

(0.9)

0.8

2.2

3.0

2.1

1.3

0.9

2.2

Other Raw Materials

(0.1)

0.3

0.2

0.2

0.6

0.8

1.0

0.6

0.4

1.0

Total

(0.6)

0.4

(0.2)

0.9

2.7

3.6

3.4

1.8

1.4

3.1

15

(For Reference)

Changes in Interest-Bearing Debt Balance and Capital Ratio

(billions of yen)

250.0

200.0

150.0

100.0

50.0

0.0

Interest-Bearing Debt

Capital Ratio

Balance (Left Axis)

(Right Axis)

47.5 48.5

33.6 32.5

28.8

132.9

120.0

137.3

118.5

123.9

FY2016

FY2017

FY2018

FY2019

FY2020

2Q

(%)

60

50

40

30

20

10

0

16

Disclaimer

Toyo Tire & Rubber Co. Ltd. published this content on 07 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 02:33:10 UTC


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Sales 2020 343 B 3 296 M 3 296 M
Net income 2020 19 922 M 191 M 191 M
Net Debt 2020 89 168 M 856 M 856 M
P/E ratio 2020 13,5x
Yield 2020 2,58%
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EV / Sales 2020 1,04x
EV / Sales 2021 0,95x
Nbr of Employees 11 840
Free-Float 71,3%
Chart TOYO TIRE CORPORATION
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Toyo Tire Corporation Technical Analysis Chart | MarketScreener
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Technical analysis trends TOYO TIRE CORPORATION
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 7
Average target price 2 041,67 JPY
Last Close Price 1 744,00 JPY
Spread / Highest target 46,2%
Spread / Average Target 17,1%
Spread / Lowest Target -8,26%
EPS Revisions
Managers
NameTitle
Takashi Shimizu President & Representative Director
Yasuhiro Yamada Chairman
Ken Morita Independent Outside Director
Atsushi Takeda Independent Outside Director
Masayuki Kanai Director & Managing Executive Officer
Sector and Competitors
1st jan.Capitalization (M$)
TOYO TIRE CORPORATION14.48%2 581
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KUMHO PETROCHEMICAL CO., LTD.81.94%3 367
GOODYEAR TIRE & RUBBER COMPANY (THE)-29.60%2 553