JAPAN: Toyota returns to first half profits
Toyota Motor has boosted first fiscal half operating income from a loss of JPY136.9bn a year ago to JPY323.1bn while income before income taxes and equity in earnings of affiliated companies was JPY392.0bn. Net income increased from a loss of 56.0bn yen to JPY289.1bn. Net revenues for the six months to 30 September 2010 rose 15.5% to JPY9,678.4bn.
The automaker said operating income rose JPY460bn year on year due in part to "the effects of marketing efforts" of JPY570bn and cost reductions of JPY90bn. yen.
Consolidated vehicle sales for the first half totaled 3,715,000 units, an increase of 585,000 units year on year.
Executive vice president Satoshi Ozawa said: “Operating income improved significantly despite the substantial negative impact from the strong yen. This was due to our marketing efforts such as improved sales by 585,000 vehicles and decreased loan-loss and residual-loss related expenses in our financial services for the first quarter, and to our cost reduction efforts such as our company-wide VA activities in close collaborations with our suppliers.”
The automaker said it achieved year on year operating income improvement in all regions for the first half.
In Japan, operating loss improved by JPY205.7bn to a loss of JPY52bn. In North America, operating income increased by JPY119.0bn to JPY145.9bn. The increase was due to improved earnings from the financial services segment.
In Europe, operating loss improved by JPY9.7bn to a loss of JPY8.9bn. Operating income in Asia increased by JPY98.8bn to JPY164.2bn.
In Central and South America, Oceania and Africa, operating income increased by JPY32.3bn to JPY72.9bn.
In the financial services segment, operating income increased by JPY59.3bn to JPY183.7bn thanks to better than expected used car pricing that resulted in a decrease in loan loss and residual loss related expenses.
TMC revised its consolidated vehicle sales for the full fiscal year ending 31 March, 2011 from 7.38m to 7.41m units
Based on the assumption of JPY85 (previously JPY90) to the US dollar and JPY112 to the euro on average for the full year, it revised its consolidated financial forecasts for fiscal year 2011 to net revenues of JPY19 trillion (down from JPY19.5 trillion), operating income of JPY380bn, income before income taxes and equity in earnings of affiliated companies of JPY410bn and net income of 350bn (up from JPY340bn).
Ozawa said: “We currently find ourselves in a very tough business environment, characterised by the radically and seriously appreciated yen in recent months, the risk of slowdown in demand recovery in the United States and Europe and falling demand following the end of the eco-car subsidies in Japan.
"Nevertheless, we will do our utmost in order to deliver as many vehicles as possible to our customers while continuing to improve our profit structure through further fixed cost and variable cost reduction activities.”
''It's very painful to think about what to do with domestic production'' when the yen continues to remain firm against the U.S. dollar, Ozawa said at a press conference.
''But we have a mission to keep (annual) domestic production of 3m units in order to protect Japan's economy and employment,'' he added.