Toyota on Tuesday said it had achieved record fiscal third quarter operating results, setting new benchmarks for net revenue, operating income and net income, though unit sales and operating income in its key US market fell.
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Net revenues for the third quarter ended 31 December rose 9.2% year on year to JPY6.71trn, operating income was up 4.7% to JPY601.5bn, income before income taxes, minority interest and equity in earnings of affiliated companies was JPY652.7bn and net income up 7.5% to JPY458.6bn.
Positive contributions to operating income were JPY100.0bn from “marketing efforts” and JPY40.0bn from “cost reduction efforts”, the automaker said in a statement.
Negative factors totalled JPY113.2bn, the automaker noted, without elaborating.
TMC senior managing director Takeshi Suzuki said: “For this period, we posted our highest ever quarterly results for the third quarter in both revenues and profits, despite the severe business environment.
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By GlobalData“Operating income has become more equally balanced among the regions, with significant higher contribution from growing markets, specifically emerging and resource-rich countries. We believe our record high financial results can be attributed to Toyota’s growth strategy of utilising every opportunity across the full product line-up and all regions.”
Consolidated vehicle sales rose 126,000 to 2.281m and operating income increased by JPY5.9bn to JPY389.4bn due to launches of new models as well as an increase in domestic production to meet increased overseas demand.
Vehicle sales in North America however fell 8,000 units to 756,000 units and operating income there fell JPY35.5bn to JPY63.6bn due to the valuation loss on interest rate swaps from declines in interest rates.
Europe vehicle sales increased 2,000 units to 308,000 units but operating income was nearly flat at JPY34.0bn. Vehicle sales in some markets including Germany decreased, while sales in Russia and the eastern European countries showed steady growth, due to strong sales of models such as the Camry and Auris.
Sales in Asia increased 37,000 units to 241,000 units and operating income in the region more than doubled to JPY64.3bn.
Sales volume increases, especially in Indonesia and Thailand and the production capacity increase in Thailand to meet the recovering market demand, contributed to the profit increase while consolidated subsidiaries in China “greatly contributed to the earnings as well”, according to Toyota.
In other regions including South and Central America, Africa and Oceania, sales rose 95,000 units to 435,000 units and operating income increased JPY18.9bn to JPY49.9bn.
TMC’s fiscal year ending 31 March forecast was unchanged at 8.93m units, as was predicted consolidated net revenues of JPY25.5trn, operating income of JPY2.3trn and net income of JPY1.7trn.
