Toyo Tire Corp. posted a year-over-year global net sales decline of 8.9% during the first quarter of 2020. Its operating income in 1Q 2020 fell 31.8% from 1Q 2019 levels.
The company’s tire division posted a sales decline of 8.2% versus the same period last year.Moving forward, Toyo officials say the tiremaker will manage its working capital “in a timely and appropriate manner."
“As governments around the world impose restrictions on outings and movement of their people in response to the ongoing novel coronavirus pandemic, purchasing behaviors of consumers and economic activities by businesses remain hampered,” say Toyo officials.
“The Toyo Tire Group is not immune to this state of affairs. We are experiencing a setback in demand as consumer spending showed a sharp downturn in our key sales territories and elsewhere, a curtailment of sales operations due to the restriction on outings and other activities in many countries, and the impact of production adjustments by auto manufacturers, to name but a few.”
Due to the “difficulty of making informed forecasts,” the company has elected to withdraw its earlier full-year projections.
Moving forward, Toyo officials say the tiremaker will manage its working capital “in a timely and appropriate manner by, for example, adjusting inventory to a level that is proper for the times.”
Toyo's United States subsidiary resumed production at its consumer tire plant in White, Ga., earlier this month.
At the time, Toyo said that production there “will be ramped up gradually and our plan is to bring back all of our employees on a revised shift schedule.”
The plant can build 46,500 tires per day at full capacity, according to MTD research.
