Summary Report of Consolidated Business Performance
for the First Quarter of Fiscal Year 2021 (January 1, 2021 - December 31, 2021)
HYOGO, JAPAN - May 14, 2021 - Toyo Tire Corporation ("the Company"; President & CEO: Takashi Shimizu) announces its consolidated business performance for the first quarter of fiscal year 2021 (January 1, 2021 through December 31, 2021) as follows:
Quantitative information concerning the quarterly financial results
(1) Business Results
●Net Sales: | 87,744 | million yen (an increase of 5,650 million yen, or |
6.9% from the same period in FY2020) | ||
●Operating Income: | 12,702 | million yen (an increase of 5,766 million yen, or |
83.1% from the same period in FY2020) | ||
●Ordinary Income: | 16,007 | million yen (an increase of 12,270 million yen, or |
328.3% from the same period in FY2020) | ||
●Profit Attributable | 12,153 | million yen (an increase of 10,011 million yen, or |
to Owners of Parent: | 467.6% from the same period in FY2020) |
(2) Results by Business Unit
The Tire Business Unit posted net sales of 77,741 million yen (an increase of 5,444 million yen, or 7.5% from the same period in FY2020) and an operating income of 13,191 million yen (an increase of 5,791 million yen, or 78.3% from the same period in FY2020).
The Automotive Parts Business Unit posted net sales of 9,992 million yen (an increase of 210 million yen, or 2.1% from the same period in FY2020) and an operating loss of 479 million yen (a decrease of 4 million yen from the same period in FY2020).
- Status of provision of reserves for product warranties and allowance for product repairs pertaining to the Company's seismic isolation rubber issue
In the fiscal year ended December 2015, some products shipped by the Company did not conform to performance evaluation criteria certified by Japan's Ministry of Land, Infrastructure, Transport and Tourism. When applying for Ministry certification for seismic isolation rubber for construction, the certification was in some cases based on applications lacking technical grounds.
For the first quarter of FY2021, the Company posted an extraordinary loss of 299 million yen as product compensation response-measure expenses (primarily in payroll for the Seismic Isolation Rubber Task Force, etc.).
Depending on how this is handled in the following quarter and beyond, if future costs arise (mainly business compensation and repairs for damages such as delayed damages, expenses, etc. when repair work expenses are found to additionally exceed the reserve provisions), additional provision of reserves for product warranties may be posted . At the
present time, however, it is difficult to make a reasonable estimation of the corresponding amount.
(4) Explanation of financial situation
Total assets at the end of the first quarter of the consolidated accounting period were 461,364 million yen, an increase of 15,785 million yen compared to the end of the previous consolidated accounting period.
Liabilities were 219,017 million yen, a decrease of 3,867 million yen compared to the end of the previous consolidated accounting period.
Interest-bearing liabilities were 111,447 million yen, an increase of 868 million yen compared to the end of the previous consolidated accounting period.
Net assets as of the end of the first quarter of the consolidated accounting period were 242,346 million yen, an increase of 19,652 million yen compared to the end of the previous consolidated accounting period.
As a result, the capital ratio increased by 2.5 points compared to the end of the previous consolidated accounting period to 52.1%.
Revisions to the consolidated results forecasts for the first half of the fiscal year ending December 31, 2021 (January 1, 2021 to June 30, 2021)
(Millions of yen) | ||||
Operating | Profit (loss) | |||
Net sales | Ordinary income | attributable to | ||
income | ||||
owners of parent | ||||
Previous forecasts (A) | 175,500 | 17,500 | 16,700 | 10,100 |
(announced on February 15, 2021) | ||||
Revised forecasts (B) | 175,500 | 17,500 | 20,400 | 12,600 |
Change (B-A) | - | - | 3,700 | 2,500 |
Percentage of change | - | - | 22.2% | 24.8% |
Revisions to the full-year consolidated results forecasts for the fiscal year ending December 31, 2021 (January 1, 2021 to December 31, 2021)
(Millions of yen) | ||||
Operating | Profit (loss) | |||
Net sales | Ordinary income | attributable to | ||
income | ||||
owners of parent | ||||
Previous forecasts (A) | 372,000 | 44,000 | 42,700 | 26,400 |
(announced on February 15, 2021) | ||||
Revised forecasts (B) | 372,000 | 44,000 | 46,400 | 28,900 |
Change (B-A) | - | - | 3,700 | 2,500 |
Percentage of change | - | - | 8.7% | 9.5% |
Consolidated Balance Sheets
(Unit: Millions of yen) | ||
End of previous fiscal year | End of current fiscal year | |
December 31, 2020 | March 31, 2021 | |
Assets | ||
Current Assets | ||
Cash and deposits | 37,650 | 36,195 |
Notes and accounts receivable - trade | 72,598 | 69,694 |
Merchandise and finished goods | 40,061 | 46,431 |
Work in process | 3,030 | 3,395 |
Raw materials and supplies | 12,690 | 14,871 |
Other | 15,050 | 13,542 |
Allowance for doubtful accounts | (343) | (361) |
Total current assets | 180,739 | 183,769 |
Fixed Assets | ||
Property, plant and equipment | ||
Buildings and structures, net | 62,309 | 65,216 |
Machinery, equipment and vehicles, net | 92,574 | 100,855 |
Other, net | 45,823 | 40,372 |
Total property, plant and equipment | 200,707 | 206,444 |
Intangible Assets | ||
Other | 4,851 | 5,155 |
Total intangible assets | 4,851 | 5,155 |
Investments and other assets | ||
Investment securities | 39,986 | 44,699 |
Other | 19,398 | 21,398 |
Allowance for doubtful accounts | (104) | (103) |
Total investments and other assets | 59,280 | 65,994 |
Total fixed assets | 264,839 | 277,594 |
Total assets | 445,579 | 461,364 |
Consolidated Balance Sheets
(Unit: Millions of yen) | ||
End of previous fiscal year | End of current fiscal year | |
December 31, 2020 | March 31, 2021 | |
Liabilities | ||
Current liabilities | ||
Notes and accounts payable - trade | 29,666 | 25,559 |
Commercial papers | 6,000 | 5,000 |
Short-term loans payable | 16,200 | 15,422 |
Accounts payable - other | 21,580 | 17,504 |
Income taxes payable | 1,766 | 4,878 |
Provision for product compensation | 9,192 | 7,256 |
Other | 24,236 | 25,630 |
Total current liabilities | 108,643 | 101,251 |
Non-current liabilities | ||
Bonds payable | ― | 10,000 |
Long-term loans payable | 86,010 | 78,536 |
Net defined benefit liability | 5,437 | 5,650 |
Provision for product compensation | 9,126 | 9,233 |
Other provision | 100 | 100 |
Other | 13,567 | 14,245 |
Total non-current liabilities | 114,242 | 117,766 |
Total liabilities | 222,885 | 219,017 |
Net assets | ||
Shareholders' equity | ||
Common stock | 55,935 | 55,935 |
Capital surplus | 54,504 | 54,504 |
Retained earnings | 90,866 | 99,170 |
Treasury stock | (146) | (147) |
Total shareholders' equity | 201,159 | 209,463 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale securities | 19,086 | 22,466 |
Deferred gains or losses on hedges | 3 | (98) |
Foreign currency translation adjustments | (2,609) | 5,309 |
Remeasurements of defined benefit plans | 3,136 | 3,104 |
Total accumulated other comprehensive income | 19,616 | 30,782 |
Non-controlling interests | 1,918 | 2,101 |
Total net assets | 222,694 | 242,346 |
Total liabilities and net assets | 445,579 | 461,364 |
Consolidated Statements of Income
(Unit: Millions of yen) | ||
Previous fiscal year | Current fiscal year | |
FY2020 | FY2021 | |
(From January 1, 2020 | (From January 1, 2021 | |
to M arch 31, 2020) | to M arch 31, 2021) | |
Net sales | 82,094 | 87,744 |
Cost of sales | 52,860 | 52,224 |
Gross profit | 29,233 | 35,520 |
Selling, general and administrative expenses | 22,297 | 22,817 |
Operating income | 6,936 | 12,702 |
Non-operating income | ||
Interest income | 116 | 76 |
Dividends income | 215 | 124 |
Foreign exchange gains | ― | 3,690 |
Equity in earnings of affiliates | 68 | 38 |
Other | 613 | 415 |
Total non-operating income | 1,014 | 4,346 |
Non-operating expenses | ||
Interest expenses | 510 | 363 |
Foreign exchange losses | 2,957 | ― |
Other | 745 | 678 |
Total non-operating expenses | 4,213 | 1,041 |
Ordinary income | 3,737 | 16,007 |
Extraordinary income | ||
Gain on sales of investment securities | 1,255 | 246 |
Total extraordinary income | 1,255 | 246 |
Extraordinary loss | ||
Loss on retirement of non-current assets | 114 | 53 |
Impairment loss | 68 | 93 |
Loss on product compensation | 691 | 299 |
Loss on provision for product compensation | 365 | ― |
Total extraordinary loss | 1,239 | 446 |
Profit before income taxes | 3,753 | 15,807 |
Income taxes | 1,709 | 3,525 |
Profit | 2,043 | 12,281 |
Profit (Loss) attributable to non-controlling interests | (97) | 128 |
Profit attributable to owners of parent | 2,141 | 12,153 |
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Toyo Tire & Rubber Co. Ltd. published this content on 14 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2021 15:04:04 UTC.