Toyota Motor Corporation (TMC) has announced record results for the financal year ended 31 March, 2006.
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Operating income rose 12.3% to 1.87 trillion yen and net income was up 17.2% to 1.37 trillion yen, the third consecutive year in which this figure exceeded one trillion yen.
Net revenues increased 13.4% to 21.03 trillion yen.
Toyota cited “positive contributions to operating income” including 300bn yen from exchange rates, 240.0bn yen from marketing efforts and 130.0bn yen from cost reductions.
These offset the negative effects of an increase in expenses of 307.3bn yen and effect of unspecified “special factors” of 156.5bn yen.
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By GlobalDataTMC President Katsuaki Watanabe said: “Earnings trended upwards in the latter half of the fiscal year, resulting in positive year-on-year growth for the entire year. Although the effects of foreign currency exchange rates were contributing factors, Toyota’s performance demonstrated the strength of our company’s ongoing operational efforts.”
TMC also announced a second-half cash dividend up 15 yen per share for a total dividend payout for the full year of 90 yen per share, up 25 yen, and noted that it will have increased its dividend for seven consecutive terms.
Watanabe added: “As for dividend payout, we have been aiming to steadily increase the payout ratio to 30% on a consolidated basis, and we plan to propose, at the general shareholders’ meeting, a one-year share buy back program of up to 30m shares or 200bn yen.”
In fiscal 2006, Toyota’s consolidated vehicle sales increased 7.6% to 7.974m units.
In Japan, while new models such as the Ractis, Vitz (Yaris) and Belta (Yaris sedan) were well-received, sales of existing models including the ist, Wish and Crown decreased amid weak market demand off 0.7% in Toyota’s case.
Consolidated vehicle sales decreased overall by 17,000 vehicles to 2.364m though sales outside Japan were up 11.6% to 5.61m.
Toyota’s market share in Japan, excluding mini-vehicles, for the full year was 44.3%, exceeding 40% for the eighth consecutive year.
Sales in North America reached 2.556m vehicles, an increase of 285 thousand vehicles, mainly due to steady sales of new models such as the Avalon and Tacoma and of other popular models including the Prius and those in the Scion series. In Europe, the newly introduced Czech-built Aygo contributed to a sales increase of 44,000 vehicles to 1.023m.
Sales in Asia increased by 47,000 vehicles, to 880,000 vehicles, mainly due to strong sales of IMV (Innovative International Multi-purpose Vehicle) models.
In other regions including Africa, Oceania and South and Central America, sales improved to reach 1.151m, an increase of 207,000. The startup of IMV production in countries such as Argentina and South Africa contributed to the increase.
For fiscal year 2007, based on an exchange rate of 110 yen to the US dollar and 135 yen to the euro, TMC forecasts consolidated net revenues of 22.3 trillion yen, operating income of 1.90 trillion yen and net income of 1.31 trillion yen.
It estimates that consolidated vehicle sales will be 8.450m vehicles.
Watanabe added: “Our business environment will remain severe, with a significant increase in raw material prices and competition intensifying. However, we wish to achieve results that exceed our latest financial results while continuing investment for future growth.”
