Toyota Motor Corporation has boosted operating income 35.1% for the six months ended 30 September, 2006.
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Consolidated net revenues for the period totaled 11.47 trillion yen, an increase of 15.3% compared to the same period last fiscal year. Operating income increased 35.1% to 1.09 trillion yen, while income before income taxes, minority interest and equity in earnings of affiliated companies was 1.17 trillion yen.
Net income increased 36.2% to 777.2bn yen.
Positive contributions to operating income totaled 380.0bn yen, consisting of 190.0bn yen from the effects of changes in foreign exchange rates, 150.0bn yen from marketing efforts and 40.0bn yen from cost reduction efforts. Negative factors totaled 96.0bn yen, including an increase in R&D expenses of 20.1bn yen.
TMC also announced an interim cash dividend of 50 yen per share for the first half ended September 30, a year on year increase of 15 yen per share.
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By GlobalDataTMC executive vice president Mitsuo Kinoshita said: “For the first half, Toyota posted record consolidated results across the board. Our first half revenues exceeded ten trillion yen and operating income exceeded one trillion yen for the first time. We believe our efforts to build a solid operational foundation contributed to these results.”
Consolidated vehicle sales for the first half reached a record high of 4.145m, an increase of 312,000 units over the same period last year.
In Japan, vehicle sales decreased 13,000 to 1.073m units. Despite positive sales of new models such as the Ractis, Belta and Rush, sales of some existing models declined. But Toyota’s market share excluding mini-vehicles grew 1.9% to 44.7%.
Operating income from Japanese operations increased by 298.5bn yen from the same period last year, to 684.4bn yen, mainly due high domestic production volume in response to strong demand outside of Japan.
In North America, sales reached 1.464m, an increase of 219,000 units, due to strong sales of redesigned models such as the RAV4 and Yaris and the new model FJ Cruiser. However, operating income decreased 18.0bn yen, to 250.5bn yen, due mainly to valuation losses on interest rate swaps.
In Europe, led by sales of compact models such as the Aygo and Yaris, vehicle sales increased 91,000 to 589,000 units.
Operating income from European operations increased 25.9bn yen to 66.0bn yen.
In Asia, sales decreased by 66,000 to 382,000, due mainly to sales falls in Indonesia and Taiwan.
Operating income from Asian operations also decreased, by 14.1bn yen to 61.3bn yen, as a result of falls in both production and sales volume.
In other regions, including Central and South America, Oceania and Africa, sales increased 81,000 to 637,000 units, due to strong sales of the IMV series.
But operating income in these regions decreased 0.1bn yen to 36.1bn yen.
TMC estimates that consolidated vehicle sales for the fiscal year ending 31 March 2007 will be 8.47m units, an upward revision from its initial forecast announced in May 2006.
Consolidated revenues and earnings forecast for the fiscal year were also revised, projecting consolidated net revenues of 23.2 trillion yen, operating income of 2.20 trillion yen and net income of 1.55 trillion yen.
Kinoshita said: “Despite increased raw material costs and business expansion expenses, we aim to achieve higher levels of revenues and profits through further increase of vehicle sales and cost reductions.”
