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Toyo Tire profit shaken down over building quake pads scandal

Kyodo

Toyo Tire & Rubber Co. group net profit plummeted 94.6 percent to ¥1.67 billion for 2015 after a massive special loss from its data falsification scandal clobbered profits, the company said Monday.

Consolidated operating profit meanwhile grew 33.4 percent to ¥63.38 billion on sales of ¥407.79 billion, up 3.6 percent.

The Osaka-based firm booked a special loss of ¥46.67 billion for the year through December, as it needs to pay for replacement parts and repairs caused by data falsification relating to its earthquake shock absorbers.

Nationwide, 154 buildings are known to have substandard shock pads or those whose quality cannot be guaranteed. The buildings include apartment buildings, hospitals and public offices.

In October, the company admitted falsifying data or skipping mandatory tests on some of its vibration-absorbing products used mainly in trains and ships.

President Takuji Yamamoto resigned over the matter in November.

Meanwhile, Toyo Tire said it expects ¥30 billion in net profit in 2016 and ¥55 billion in operating profit on sales of ¥420 billion.