Toyota increased net revenues by 14.8% in the third quarter (ending December 31, 2005) of its current financial year.
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Net revenues totalled 5.33 trillion yen. Operating income increased 14.0 percent to 482.2 billion yen, while income before income taxes, minority interest and equity in earnings of affiliated companies rose to 639.9 billion yen.
Commenting on the results, TMC Senior Managing Director Takeshi Suzuki said, “Compared with the first and second quarters, operating income strongly improved in the third quarter, exceeding the results of the same period last year. Sales growth, particularly in Asia and North America, along with cost reduction efforts and currency fluctuations contributed to the increase.”
In a press conference Suzuki said the weaker yen also helped.
Net income was 397.5 billion yen thanks to a rise in the value of its stake in former UFJ holdings, after its merger into the Mitsubishi UFJ Financial Group, reported Reuters.
Consolidated vehicle sales for the three months reached 1.98 million vehicles, an increase of 141,000 vehicles or 7.7% compared with the same period of the last fiscal year. In Japan, with the exception of the mini-vehicle segment, overall market demand was weak. Yet Toyota’s consolidated vehicle sales remained at approximately the same level as the third quarter of the last fiscal year, totalling 571,000.
Toyota’s market share (excluding mini-vehicles) remained high at more than 46%.
Sales in North America reached 643,000 vehicles, an increase of 67,000 vehicles compared with the same period of the last fiscal year due to the strong popularity of the Avalon, Tacoma pick-up trucks, Prius and the Scion line-up.
In Europe, sales totalled 246,000 vehicles, approximately the same level as the third quarter of the last fiscal year, despite a difficult market environment.
Sales in Asia, which have been reported as an independent geographical segment since the first quarter, rose to 217,000 vehicles, an increase of 22,000 vehicles. This increase was mainly due to the successful expansion of the IMV (Innovative International Multi-purpose Vehicle) project.
Sales in other regions including Africa and Central and South America reached 303,000 vehicles, an increase of 57,000 vehicles.
TMC estimates that consolidated vehicle sales for the fiscal year ending March 31, 2006 will be 7.95 million vehicles, a decrease of 80,000 vehicles from the forecast announced in November 2005.
Suzuki concluded by commenting on the profit outlook for the fiscal year ending March 31, 2006. “Prospects for our unconsolidated financial results have not changed since our interim report,” he said. “We aim to exceed last year’s totals for consolidated revenue and earnings.”
