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November 6, 2018

Toyota boosts first half profits

Toyota Motor Corporation (TMC) boosted fiscal first half operating profit to the end of September 2018 from JPY1.0965 trillion to JPY1.2618 trillion while net income increased from JPY1.0713 trillion to JPY1.2423 trillion.

By Olly Wehring

Toyota Motor Corporation (TMC) boosted fiscal first half operating profit to the end of September 2018 from JPY1.0965 trillion to JPY1.2618 trillion while net income increased from JPY1.0713 trillion to JPY1.2423 trillion.

Vehicle sales for the six month period rose 29,493 units to 4,418,928.

The automaker said the operating income rise of JPY165.3bn included an increase of JPY150bn in marketing activities and a decrease in expenses of JPY40bn.

TMC senior managing officer Masayoshi Shirayanagi said: "As for the cost reduction and fixed cost reduction activities, we are steadily making progress towards achieving our challenge-level target. In order to achieve this at the end of this financial year and continue strengthening our earning power, we will accelerate our activities throughout the second half of this financial year across the regions."

In Japan, vehicle sales totaled 1,030,938 units, a decrease of 56,416 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps increased by JPY109.9bn to JPY751.6bn.

In North America, vehicle sales totaled 1,411,246 units, an increase of 15,088. Operating income fell JPY3.9bn to JPY137.2bn.

In Europe, vehicle sales totaled 492,594 units, an increase of 23,091 units, while operating income increased JPY22.8bn to JPY61.8bn.

In Asia, vehicle sales totaled 811,123 units, an increase of 67,184 units, while operating income rose JPY 63.2bn to JPY276.2bn.

In other regions (including Central and South America, Oceania, Africa, and the Middle East), vehicle sales fell 19,454 to 673,027  while operating income fell JPY7.9bn to JPY63.8bn.

Financial services operating income increased by JPY10.2bn to JPY154.9bn yen, including a loss of JPY19.1bn yen in valuation gains/losses from interest rate swaps.

For the fiscal year ending 31 March, 2019, TMC has maintained its vehicle sales forecast of 8.9m units, "in consideration of the latest sales trends worldwide".

It updated its financial forecasts for the fiscal year, however.

Based on an exchange rate assumption of JPY110 to the US dollar and JPY130 to the euro, TMC now forecasts consolidated net revenue of JPY29.5 trillion, operating income of JPY2.4 trillion and net income of JPY2.3 trillion.

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