Summary Report of Consolidated Business Results(14,Nov,2006)

OSAKA, JAPAN - November 14, 2006 - Toyo Tire & Rubber Co., Ltd. (President: Yoshio Kataoka) has announced its consolidated business results for the first six months of fiscal 2006 (from April 1, 2006 to September 30, 2006). Compared with the same period of fiscal 2005, net sales increased to 145,761 million yen (up 3.1%), operating income increased to 5,931 million yen (up 8.7%), ordinary income decreased to 4,404 million yen (down 22.6%), and net income for the interim period increased to 8,596 million yen (up 292.4%). While the net sales for the half year hit a new high for the second straight year, the net income was the highest ever for interim earnings, bolstered by extraordinary income from the sale of the shopping center leasing business operated in Itami City.

Results by business segment are as follows:

1. Tires
   Sales of original equipment tires and replacement tires in the domestic market stood at the same level seen in the first half of fiscal 2005. This was a result of intensified marketing efforts to boost sales of high-value-added products, centered on the two key brands TRANPATH and PROXES, though the performance was affected by lower production of car models equipped with Toyo’s products as well as sluggish demand at home. Overseas sales, meanwhile, grew year on year, thanks partly to a greater depreciation of the yen than anticipated early in the fiscal year, despite fluctuating demand attributable to gasoline price hikes and intensifying competition. As a result, the tire segment posted net sales of 96,992 million yen (up 5.2% from the same period of fiscal 2005), and operating income of 5,226 million yen (up 1.0%).
2. Chemical & Industrial Products
   Among industrial polyurethane products, sales of thermal insulation boards for livestock barns and heat-proofing work remained sluggish, though the polyurethane concentrate solution system business and bedding/office equipment-related business were on the up. In the field of industrial rubber products, sales in the civil engineering field declined substantially, while sales of air springs and anti-vibration rubber products for railroad vehicles, seismic isolation rubber products for buildings, and hoses grew. The overall effect was a decline in both rubber and polyurethane product lines, compared to the same period of fiscal 2005, with net sales for the chemical & industrial products segment dropping to 20,492 million yen (down 2.8%), and operating income falling to 421 million yen (down 35.7%).
3. Automotive Parts
   Sales of anti-vibration rubber products grew over the first half of fiscal 2005 thanks to boosted production and sales at home and abroad, and sales of seat cushions also rose fueled by steadily increasing demand. As a result, the automotive parts segment posted net sales of 28,086 million yen (up 2.9% year-on-year), and operating income of 121 million yen, a dramatic turnaround from the operating loss of 613 million yen for the same period of fiscal 2005. This positive outcome was brought about by a wide range of profitability improvement measures including the rationalization of a manufacturing subsidiary in North America.