By Alex Kapadia
Toyo tyres has slashed by half the size of its projected first half operating and net losses.
The Japanese tyres manufacturer claims the improved results are due to the better-than-anticipated outcome of its cost-containment measures and the depreciating yen.
Toyo expects to post a net loss of 2 billion yen on net sales of 129.6 billion yen for the first half ended Sept. 30, 2009. The company’s 2009 fiscal year will end on March 31, 2010.
Based on the exchange rate as of September 30, Toyo’s estimates it will lose $22.3 million on sales of $1.4 billion in the first half.
The preliminary results are better than expected, according to Toyo. On May 11, the company predicted a net loss of 4.2 billion yen on sales of 140 billion yen for the first half.
The company is formulating its full-year performance forecast and is expected to announce it on November 9 when its first-half financial results are revealed.