Tokai posts notice of extraordinary loss

Tokai posts notice of extraordinary loss
29 July 2011

Tokyo – Tokai Rubber Industries has notified markets that it posted an extraordinary loss in the three months since March, on account of the great Tohoku Earthquake and resulting shut-down of some production facilities.

Tokai's statement said, “The factory has stopped production for key customers in the eastern influence of earthquake that occurred on 11 March 2011. We recorded 2,815 million yen in extraordinary loss abnormally low operating loss that occurred in the first quarter ended March 31, 2012. “

The announcement coincided with Tokai releasing its results for the three months to 30 June 2011.

Sales declined by almost 25 percent to yen 48 460 million (euro ?? million) compared with yen 64 494 million a year previously. The company remained in the black, recording an operating profit of yen 1583 million (euro ?? million), about half the level of a year previously.

The company said the earthquake caused severe disruption to its business, both in terms of availability of raw materials and the significant change in ordering patterns from its customers.

Outside the automotive segment, Tokai saw increased sales of high-pressure hoses and strong demand in China for vibration control devices for residential buildings