Toyo Tire & Rubber Co. lost ¥30.4 billion between January and June this year due to the replacement of low-grade quake-absorbing pads in buildings.
The net loss amounted to ¥4.16 billion for the first half of the year..
The company cut its full-year outlook for net profit and sales. It is now expecting a net profit of ¥12 billion, down from the previous estimate of ¥19 billion, on sales of ¥415 billion, down from ¥425 billion projected earlier.
Consolidated operating profit, however, is expected to rise to ¥55 billion from ¥49 billion, benefiting from lower costs of materials and a weaker yen, Toyo Tire said.
Meanwhile, the company reported group sales of ¥194,402 million for the January-June first half, up 3.8 % from a year before, as it fared well in its mainstay automobile tire business in North America. Operating profit grew 35.5 % to ¥29.126 billion.
At a news conference in Osaka, where the company is based, Toyo Tire President Takuji Yamamoto suggested that the firm could book additional losses related to the replacement of the rubber products, saying: “It is difficult at this moment to reasonably estimate” all relevant costs.
Toyo Tire has been under fire for manipulating performance data for its rubber products designed to reduce vibration in buildings during an earthquake.
The company said earlier that substandard shock absorber devices had been installed in 154 buildings across Japan, including hospitals and schools.
In July, Toyo Tire Chairman Akira Nobuki resigned to take responsibility for the data falsification, while Yamamoto will leave the post after an extraordinary shareholders meeting is held as early as this fall.