Toyota Motor Corporation’s net profit decreased 9.7% or 23.8 billion yen to 222.5 billion yen in the fiscal 2004 first quarter compared with the same period in fiscal 2003.
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Net revenues increased by 215.3 billion yen, or 5.6%, to 4,092.9 billion yen, while operating income decreased by 51.8 billion yen, or 13.2%, to 340.7 billion yen. Among the factors contributing to the increase in operating income, cost reduction efforts accounted for 60.0 billion yen. The factors contributing to the decrease in operating income of 111.8 billion yen included the effect of marketing activities of 40.0 billion yen, the effect of changes in exchange rates of 30.0 billion yen and increases in other expenses of 41.8 billion yen.
Income before income taxes, minority interest and equity in earnings of affiliated companies decreased by 51.0 billion yen, or 12.1%, to 371.2 billion yen.
Net revenues for the automotive operations increased by 200.2 billion yen, or 5.6%, to 3,798.5 billion yen in the first quarter compared with a year ago, and operating income decreased by 60.1 billion yen, or 15.2%, to 333.9 billion yen. The decrease in operating income was mainly due to the effects of changes in exchange rates and the temporary effects of model shifts at the plants in North America, partially offset by increases in vehicle units sold as well as cost reduction efforts.
Net revenues for the financial services operations increased by 3.2 billion yen, or 1.8%, to 184.0 billion yen and operating income increased by 9.6 billion yen, or 945.3%, to 10.6 billion yen.
The increase in operating income was mainly due to an increase in financing volumes as well as a decrease in valuation losses on interest rate swaps in accordance with the Statement of Financial Accounting Standards No.133 and No.138, partially offset by decreases in the interest rates applied to financing to customers.
Net revenues for all other businesses increased by 28.3 billion yen, or 18.2%, to 183.7 billion yen and operating loss decreased by 0.5 billion yen to 2.8 billion yen.
Net revenues in Japan increased by 145.8 billion yen, or 5.7%, to 2,714.2 billion yen, and operating income decreased by 17.9 billion yen, or 6.6%, to 252.1 billion yen. The decrease in operating income was mainly due to the effects of changes in exchange rates and a decrease in export units, partially offset by cost reductions and an increase in vehicle units sold in Japan.
Net revenues in North America decreased by 153.9 billion yen, or 9.1%, to 1,530.8 billion yen, and operating income decreased by 37.4 billion yen, or 36.6%, to 64.6 billion yen.
The decrease in operating income was mainly due to an increase in selling expenses by subsidiaries in North America and the temporary effects of model shifts at the plants there.
Net revenues in Europe increased by 122.2 billion yen, or 30.0%, to 529.9 billion yen, and operating income increased by 1.1 billion yen, or 23.1%, to 6.1 billion yen. The increase in operating income was mainly due to increases in local production volumes in France and Turkey as well as increases in vehicle units sold.
Net revenues in other markets increased by 169.5 billion yen, or 44.7%, to 548.7 billion yen, and operating income increased by 6.2 billion yen, or 43.4%, to 20.5 billion yen. The increase in operating income was primarily due to increases in vehicle units sold mainly in Asia.
Domestic vehicle sales increased by 49,000 units, or 9.9%, to 543,000 units as a result of the introduction of new products and strong sales efforts of domestic dealers.
Toyota’s market share excluding minivehicles and including minivehicles reached 44.9% and 41.1% respectively in the quarter, both exceeding 40.0%. Meanwhile, overseas vehicle sales increased by 72,000, or 7.3%, to 1,051,000 units, mainly due to the introduction of new products.
As a result, total vehicle sales in Japan and overseas increased by 121,000 units, or 8.2%, to 1,594,000 units.
