Toyota has raised its forecast for operating profit for the current fiscal year by 9% to a record 2.4 trillion yen reflecting the decline of the yen against the dollar and cost savings.
The company also posted net revenues for the third quarter ended December 31 of 19.12 trillion yen, an increase of 17.8% on the previous year. Operating income for the Q3 period increased from 818.5 billion yen to 1.85 trillion yen, while income before income taxes1 was 2.02 trillion yen. Net income increased from 648.1 billion yen to 1.52 trillion yen.
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Operating income increased by 1.03 trillion yen. Major factors contributing to the increase included currency fluctuations of 800.0 billion yen, cost reduction efforts of 210.0 billion yen and marketing activities of 140.0 billion yen.
Consolidated vehicle sales for the nine months totalled 6,784,523 units, an increase of 155,041 units.
Commenting on the results, TMC Managing Officer Takuo Sasaki said: “In addition to the positive impact of the weaker yen, our operating income increased due to marketing efforts such as increased vehicle sales and cost reduction activities through collaboration with our suppliers.”
Toyota said it maintains the estimate it announced in November 2013 that its consolidated vehicles sales for the fiscal year ending March 31, 2014 will be 9.1m units.
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By GlobalDataIn addition, Toyota forecasts consolidated net revenue of 25.5 trillion yen, operating income of 2.40 trillion yen and net income of 1.90 trillion yen for the fiscal year ending March 31, 2014, based on an exchange rate of 100 yen to the US dollar and 134 yen to the euro.
Commenting on the raised forecasts for FY2014, Sasaki said: “Our upwardly revised forecast is due to progress in our recent profit improvement activities through cost reduction and marketing efforts, in addition to the change in our assumption of foreign exchange rates to reflect the depreciation of the yen.”
Regional Q3 breakdown
In Japan vehicle sales totalled 1,641,420 units, a decrease of 26,557 units. Operating income from Japanese operations increased by 894.9 billion yen to 1.16 trillion yen.
In North America, vehicle sales totalled 1,962,212 units, an increase of 96,762 units. Operating income increased by 109.3 billion yen to 274.8 billion yen, including a loss of 33.6 billion yen due to valuation gains/losses from interest rate swaps. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 174.3 billion yen to 308.4 billion yen.
In Europe, vehicle sales totalled 629,713 units, an increase of 27,122 units, while operating income increased by 21.8 billion yen to 43.1 billion yen.
In Asia, vehicle sales totaled 1,201,290 units, a decrease of 66,643 units, while operating income increased by 19.4 billion yen to 305.7 billion yen.
In other regions (including Central and South America, Oceania, Africa and the Middle East), vehicle sales totaled 1,349,888 units, an increase of 124,357 units, while operating income increased by 17.3 billion yen to 108.3 billion yen.
