While parent company Toyota Motor Corporation posted a huge net loss for the fiscal year ended 31 March 2009 (its first ever), Toyota Australia booked a net profit after tax of A$123.4m (US99.5m; GBP60.4m; EUR71.4m) for the same period. Sales revenue was A$8.8bn.
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For comparison, 2007/8 net profit after tax was A$242.2m and sales revenue totalled A$9.4bn but president and CEO Max Yasuda hinted the company would do little better than break even in the current year.
“[We] will continue to adjust production in line with market demand. Toyota Australia is applying all its efforts to ensure results are above break-even for the fiscal year ending 31 March 2010,” he said in a statement.
Domestic retail sales volume for 2008-9 was 229,189 vehicles (including Lexus models).
Export sales of the locally-produced Camry (shipped primarily to the Middle East) and the Aurion V6 variant totalled 94,955 units worth A$1.7bn.
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By GlobalDataDuring the financial year, the Australian plant at Altona (near Melbourne) produced 130,228 Camry and Aurion models for domestic and export markets, down on the 148,810 units built the previous year.
Yasuda said all aspects of the company’s business had been “severely” hit by the the global financial crisis in the second half.
“The headline number is misleading. The emergence of the global financial crisis in the second half of the year led to a severe and unprecedented deterioration in our vehicle sales, resulting in lower profitability,” he said in a statement.
“I expect local conditions will continue to be difficult for carmakers and suppliers for the remainder of 2009.
Australia’s manufacturing competitiveness is being impacted by the global economic crisis, fluctuations in currency, price increases in raw materials and decline in vehicle and parts demand”
Toyota Australia was already taking measures to support its operations during this period to ensure it is in a stronger position when the market recovers, Yusada added.
“We have intensified our supplier and dealer development programmes to ensure we have a healthy and sustainable local car industry. Also, we have undertaken cost efficiency programmes, implemented an executive pay freeze and are using non-production time to develop our employees,” he said.
“We are doing everything possible to support our people, our suppliers and dealers so we can weather the storm.”
Toyota Australia has forecast Australian domestic vehicle retail sales for calendar year 2009 at 850,000 units.
According to the Federal Chamber of Automotive Industries (FCAI), 1,012,164 passenger cars, SUVs and commercial vehicles were sold in Australia last year, down 3.6% on the 2007 tally.
“The continuance of the current severe global conditions will result in exports being significantly lower,” Yusada said.
“There is no doubt that the outlook for 2009 financial period remains challenging. But there will be opportunities for companies that can rapidly adjust. Fortunately, Toyota, its suppliers and dealers have acted quickly, adjusting plans in line with the new economic environment.”
Yasuda said industry policy introduced by the Victorian state and federal governments was aimed at building the long term sustainability of the local car industry.
He added that, despite current difficult conditions, Australian car buyers were being offered best-value deals that would help stimulate the market, in addition to incentives such as the federal government’s investment allowance.
“In line with Toyota’s strategy to accelerate the rollout of eco-friendly vehicles, the hybrid Camry is on schedule to be in the market from the beginning of 2010. We know consumers want high quality, affordable and attractive products,” Yusada added.
