Toyota Motor (TMC) operating profit for the nine months to 31 December, 2011 plunged 72% year on year to JPY117.1bn (US$1.52bn) on sales down 10.2% to JPY12.9 trillion. Net income fell from JPY382.7bn to JPY162.5bn. The company has, however, revised upwards its fiscal full-year forecast for 2011/12.
The automaker blamed marketing costs of JPY120bn and currency fluctuations of JPY200.0bn for the JPY305bn fall in operating profit.
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Vehicle sales fell 525,000 to 4,995,000 units.
TMC senior managing officer Takahiko Ijichi said: “Despite cost reduction from company-wide value analysis activities and a decrease in fixed cost and expenses, net income decreased, compared to the same period last fiscal year, due to the impact of reduced sales by the effects of [the March 2011] earthquake, floods in Thailand and the continued yen appreciation.”
In Japan, vehicle sales fell 131,000 units to 1,357,000 units and the operating loss there increased JPY132bn to JPY306.4bn.
In North America, vehicle sales fell 280,000 to 1,268,000 units while operating income was off JPY99.3bn to JPY151.8bn yen.
European vehicle sales inched up 4,000 units to 580,000 while operating income improved JPY15.2bn to JPY8.5bn.
Asia vehicle sales fell 16,000 to 894,000 units and operating income fell JPY61.8bn to JPY171.0bn.
In Central and South America, Oceania and Africa, vehicle sales totaled 896,000, down 99,000, while operating income decreased JPY21.2bn to JPY96bn.
Financial services segment operating income decreased JPY45.6bn to JPY254.5bn.
Nonetheless, TMC has revised its vehicle sales projection for the full fiscal year ending 31 March, 2012 up 30,000 from 7.38m forecast last December to 7.41m units.
Revenue is now pegged at JPY18.3 trillion (+JPY100bn), operating income at JPY270bn (+JPY70bn) and net income at JPY200bn (+JPY20bn).
Ijichi said: “Even though the yen has been further appreciating against major currencies lately, Toyota remains committed to pursuing an improvement of its earnings structure through various cost reduction activities as well as continuing the production recovery from the Japan earthquake and floods in Thailand. Also, Toyota will continue to make its utmost effort to achieve re-investment into making even better cars by strengthening its base of business and expanding vehicles sales and earnings as a target under its ‘Global Vision’.”
Speaking at a press conference in Tokyo, Ijichi said Toyota expected the Thai floods late last year to reduce its vehicle sales by 240,000 units and operating profit by JPY110bn yen for the full year.
He said the March 2011 earthquake and tsunami also lowered the company’s fiscal 2011 sales by 150,000 units and its operating profit by JPY160bn, Kyodo News reported.
Toyota’s latest forecast is based on an assumed average exchange rate of JPY78 to the dollar after the yen fell to a post-war record low of 75.32 in October.
The company has, however, maintained the assumed dollar-yen exchange rate from the earlier forecast and only revised its euro-yen rate to JPY108, from JPY109 in December, for the full year, Kyodo noted.
