Toyota Motor Corporation swung back into operating profit in the first fiscal quarter ended 30 June, 2012, booking JPY353.1bn in the black after being JPY108bn in the red in Q1 2011 due to effects of the 11 March Japanese earthquake and tsunami.
Net revenues for Q1 2012 surged almost 60% to JPY5,501.5bn yen. Pre-tax income was JPY415.2bn and net income soared from JPY1.1bn to JPY290.3bn.
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Toyota said “positive effects from marketing activities” worth JPY440.0bn and JPY70bn of cost cuts, less negative currency fluctuations of JPY40bn, were behind the operating income gain.
Vehicle sales in the first quarter rose 1.048m to 2.269m units.
Senior managing officer Takahiko Ijichi said: “In all regions, vehicle sales increased significantly due to strong recovery of demand which had suffered last year from the lack of supply caused by the Great East Japan Earthquake.
“Despite the yen’s appreciation, operating income increased substantially thanks to increased vehicle sales and cost reduction efforts including our company-wide VA activities.”
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By GlobalDataIn Japan, vehicle sales rose 285,000 units to 577,000 and operating income rose JPY313.7bn to JPY107.1bn.
In North America, vehicle sales rose 387,000 units to 663,000 and operating income increased JPY88.6bn to JPY117.6bn including a JPY22bn special item.
Even in Europe, vehicle sales rose 35,000 to 209,000 units and operating income was up JPY10.9bn to JPY3.4bn.
In Asia, vehicle sales rose 159,000 units to 418,000 and operating income was up JPY41.4bn to JPY101.5bn.
In Central and South America, Oceania and Africa, vehicle sales were up 182,000 units to 402,000 and operating income increased JPY6.1bn to JPY27.1bn.
Financial services operating fell JPY7.8bn to JPY86.7bn including a JPY16.5bn special item.
2012/3 forecasts
TMC estimated vehicle sales for the fiscal year ending 31 March, 2013 at 8.8m units, an increase of 100,000 units from forecasts announced in May 2012, “due to increased sales volume [in markets] such as in Japan and North America”.
It forecast net revenue of JPY22 trillion, operating income of JPY1 trillion and net income of JPY760bn, the same as forecast in May, with the revision of an exchange rate of JPY80 to the US dollar and JPY101 to the euro.
Ijichi said: “Although we expect further marketing efforts and further cost reduction efforts in collaboration with our suppliers, we maintain our operating income forecast of JPY1 trillion. This is because we assume negative FOREX impact mainly resulting from weakness of the euro and a risk of deterioration of market environments.”
