Toyo Tires reported record first-quarter sales of 135.5 billion yen ($880 million), marking a 6.2 percent increase year over year and reaching its highest level since adopting its current accounting period in 2013. Despite the top-line growth, operating income fell 13.7 percent to 22.4 billion yen due to rising raw material costs and foreign exchange headwinds.

“Strong sales of large-diameter tyres in North America drove revenue growth but couldn’t fully offset higher production costs,” said the company in its earnings statement. The Japanese tyre maker saw a 7.7 percent sales increase in North America, which remains its largest market.

Profit Squeeze

Ordinary income plunged 42.7 percent to 18.3 billion yen, while profit attributable to owners dropped 41.4 percent to 13.5 billion yen, primarily due to foreign exchange losses from the yen’s appreciation. The Japanese currency strengthened to 154 yen per dollar during the quarter, compared to 146 yen in the year-ago period.

The company maintained its full-year forecast, projecting annual sales of 585 billion yen, up 3.5 percent from FY2024. Operating income is expected to reach 85 billion yen, down 9.6 percent , with operating margin declining to 14.5 percent from 16.6 percent last year. The annual dividend forecast is 125 yen per share, up from 120 yen in the previous fiscal year.

“Assuming tariff impact can be absorbed with appropriate measures, earnings forecasts for FY2025 remain unchanged,” the company stated, maintaining its dividend payout ratio target of 30 percent  or higher.

Production and Expansion

The tyre maker plans to increase production volume by 6 percent in FY2025 compared to the previous year, with significant growth in both Japanese and European operations. First-quarter global production volume was 59,100 tons, representing 98 percent of the previous year's level.

Capital investment for FY2025 is projected at 35.6 billion yen, up from 25.6 billion yen in FY2024, signalling continued expansion despite market headwinds. The company has invested 194 billion yen in capital expenditures over the past five years.

Market Conditions and Raw Materials

Raw material costs continue to pressure margins, with the company projecting a negative impact of 10.5 billion yen for FY2025. Natural rubber price increases are expected to cost 7.4 billion yen, while petroleum products will add 2.0 billion yen in costs, and other materials will contribute 1.1 billion yen to the cost pressure.

First-quarter sales volume showed strong recovery in the Japanese replacement tyre market, reaching 97 percent of the previous year’s level. In comparison, North America demonstrated robust growth at 105 percent year-over-year.

Product Innovation and Corporate Initiatives

The company recently launched premium tyres for high-roof kei cars in Japan with enhanced wet grip performance. These tyres feature eco-friendly materials that improve wet braking performance by 12 percent while reducing rolling resistance by 9 percent.

In March, the company introduced new SUV tyres designed specifically for quiet city driving that meet the “Low Car Exterior Sound Tyres" voluntary standard established by the Japan Automobile Tyre Manufacturers Association.

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Kuwait is launching a comprehensive initiative to convert its stockpiles of waste tyres from an environmental concern into a driver of economic growth. As reported by the Arab Times Kuwait, the nation is moving millions of used and damaged tyres from vast dumpsites, like the one in Rahiya, to specialised recycling plants. This strategic shift aims to mitigate ecological hazards while simultaneously generating new investment prospects and job opportunities.

While three recycling facilities are currently operational, officials acknowledge that the annual output of nearly two million waste tyres necessitates a significant expansion of capacity. To address this, plans are actively progressing to establish new factories in Salmi. This increased infrastructure is intended to ensure all locally generated tyres are processed and transformed into valuable commodities.

The government sees substantial economic potential in this sector, citing international success stories where tyre recycling generates billions in annual revenue. For Kuwait to achieve similar results, officials emphasise the need to strengthen regulatory frameworks and encourage continued investment. The repurposed materials are anticipated to supply several local industries, finding applications in road construction, athletic flooring, insulation and fuel production.

This priority was recently underscored in a high-level meeting chaired by Prime Minister Sheikh Ahmad Al-Abdullah Al-Sabah. The discussions focused on accelerating recycling projects, underscoring the dual objective of safeguarding the environment and cultivating new financial resources for the state.

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In a concerted effort to build a more cohesive and vibrant organisational culture, HS HYOSUNG is significantly broadening its range of value-sharing initiatives for its workforce and their families. Central to this mission is the ‘Culture Together’ series, an internal cultural project established in 2024 on the suggestion of Vice Chairman H S Cho. This programme is designed to provide shared cultural experiences that enhance communication and unity across the company.

A key component of the '2025 Culture Together' series involved securing tickets for over 100 domestic and international employees to attend Psy’s Summer Swag concerts. To ensure accessibility for staff based in various locations, the company arranged for performances across six different cities, including Incheon, Gwacheon, Uijeongbu, Suwon, Gwangju and Busan. This follows earlier global cultural events organised this year, such as company outings to the Coldplay concert in Seoul and the Disney 100th Anniversary Exhibition.

Beyond music, HS HYOSUNG has also engaged employees through cinema and sports. A private screening of the hit film F1: The Movie was held for more than 200 staff members, offering a story of teamwork that resonated with the company’s own values. The company’s support for athletic events included inviting employees and their families to high-profile football matches, such as FC Barcelona’s friendly game in Korea and an upcoming FC Seoul match, where employees' children will participate as official escort kids.

These ongoing efforts, operating under the slogan ‘Value Together’, are a fundamental part of HS HYOSUNG’s strategy to foster empathy and strengthen bonds among its employees. The company has committed to continuing this path by developing ever more diverse and relatable programmes aimed at nurturing a warm and dynamic corporate culture.

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Celebrating a remarkable 30-year alliance, FC Internazionale Milano and Pirelli have reaffirmed one of the most enduring partnerships in global football. This significant milestone underscores a relationship built on shared values of excellence, tradition and a profound passion for sport.

To commemorate this occasion, a special-edition PIRELLI cap has been released. Limited to just 1,995 units – a direct nod to the year the partnership began – this collector’s item merges the iconic symbols of both brands. The cap features the Pirelli logo prominently on the front, accompanied by the Inter crest on the side. A distinctive Biscione motif extends elegantly across the design, seamlessly uniting the identities of both institutions. The number 30 is also featured, highlighting the three decades of continuous collaboration.

This exclusive accessory is now available for purchase online and at Inter Stores Milano, including the Castello and San Siro locations. More than just merchandise, the cap serves as a tangible symbol of a deep and historic bond between two legendary names.

The celebratory product will also be prominently featured during a symbolic sporting weekend. It will be showcased both at the Netherlands Grand Prix and during Inter’s Serie A match against Udinese on 30-31 August, linking two major events that reflect the partnership’s dual commitment to elite football and high-performance motorsport.

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The 2024 Qingdao Economic Achievements were announced recently, celebrating the city's top corporate performers and emerging leaders. Among the honourees were MESNAC Co., Ltd., named 2024 Qingdao Model Enterprise, and Chen Haijun, General Manager of Qingdao Highway IOT Technology Co., Ltd., who received the 2024 Qingdao Economic Rising Star award.

MESNAC earned its recognition by achieving substantial growth in both revenue and profit over the past year. The company has reinforced its position as an industrial leader by driving innovation in intelligent manufacturing and supporting Qingdao’s identity as a global rubber industry hub. Through its focus on digitalisation, platform-based strategies and global expansion, MESNAC continues to elevate both its own operations and the broader sector.

As head of Highway IOT, Chen Haijun has steered the firm to the forefront of the Industrial Internet revolution. The company is known for pioneering RFID intelligent tire technology and has contributed to multiple international and national standards. Its solutions are now deployed across a range of industries – from lithium battery production and logistics to rail transit – showcasing a versatile and growing impact on technological modernisation.

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