Toyota has raised its full-year profit outlook on the back of a weaker yen and projected higher sales.
The company has also announced financial results for the nine-month period ended December 31 that show lower operating income and net income – blamed on adverse currency movements and higher costs.
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While consolidated vehicle sales totalled 6,643,386 units in the nine-month period, an increase of just over 2%, bet revenues – at 20.1547 trillion yen – were down 6% on the same period of the previous year. Operating income decreased from 2.3056 trillion yen to 1.5554 trillion yen, while net income decreased from 1.8860 trillion yen to 1.4327 trillion yen.
Operating income decreased by hefty 750.2 billion yen. Toyota said that major factors impacting the decrease included currency fluctuations of 770.0 billion yen and an increase in expenses of 405.0 billion yen.
In Japan, vehicle sales totalled 1,612,729 units, an increase of 136,074 units, while operating income, excluding the impact of valuation gains/losses from interest rate swaps, decreased by 655.3 billion yen to 696.9 billion yen.
In North America, vehicle sales totalled 2,145,016 units, an increase of 4,361 units, while operating income, excluding the impact of valuation gains/losses from interest rate swaps, decreased by 29.4 billion yen to 398.1 billion yen.
In Europe, vehicle sales totalled 667,378 units, an increase of 49,694 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 1.2 billion yen to 55.5 billion yen.
In Asia, vehicle sales totalled 1,192,811 units, an increase of 176,576 units, while operating income, excluding the impact of valuation gains/losses from interest rate swaps, decreased by 41.4 billion yen to 338.0 billion yen.
Recession hit markets in South America were highly negative for Toyota sales. In ‘other regions’ (including Central and South America, Oceania, Africa and the Middle East), vehicle sales totalled 1,025,452 units, a decrease of 216,103 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, decreased by 3.1 billion yen to just 80.3 billion yen.
Financial services operating income decreased by 70.1 billion yen to 194.8 billion yen, including a loss of 15.8 billion yen in valuation gains/losses from interest rate swaps. Excluding valuation gains/losses, operating income decreased by 52.5 billion yen to 210.7 billion yen.
Forecasts revised up on weaker yen
For the fiscal year ending March 31, 2017, TMC revised its consolidated vehicle sales forecast from 8.85 million units to 8.90 million units.
TMC also updated its consolidated financial forecasts for the fiscal year ending March 31, 2017. Based on an exchange rate assumption of 107 yen to the U.S. dollar and 118 yen to the euro, TMC now forecasts consolidated net revenue of 26.5 trillion yen, operating income of 1.85 trillion yen, income before income taxes of 2.07 trillion yen, and net income of 1.7 trillion yen.
Commenting on the operating income forecasts for the fiscal year, TMC Managing Officer Tetsuya Otake said: “We have revised up our forecast by 150 billion yen to 1 trillion 850 billion yen, based on the assumption of the weaker Yen and the increase in vehicle sales.”
