Toyota – like Honda – is emphasising cost reductions efforts which it says will help to lift operating profit by 3.3% to 2,550 billion yen in the year to March 2020. In the fiscal year just ended, Toyota posted an operating profit of 2,470 billion yen – up 2.8% on the previous year. The company is planning to reduce numbers of variants and also prototyping costs (via simulation technologies). It also says it will work closely with suppliers on cost reduction strategies and processes.
Toyota Motor Corporation (TMC) announced its financial results for the fiscal year ended 31 March 2019.
Consolidated vehicle sales totalled 8,976,795 units, an increase of 12,401 units compared to the previous fiscal year. On a consolidated basis, net revenues for the period totalled JPY30.2256tn (US$274.3bn), increased JPY0.8461tn. Operating income increased from JPY2.3998tn to JPY2.4675tn, while income before income taxes was JPY2.2854tn. Net income decreased from JPY2.4939tn to JPY1.8828tn.
Operating income increased by JPY67.6bn. Major factors contributing to the increase included an increase of JPY275.0bn in marketing efforts.
TMC operating officer Masayoshi Shirayanagi said: “Excluding the overall impact of foreign exchange rates, swap valuation gains and losses and other factors, operating income improved by JPY190.0bn year on year. While net income decreased by JPY611.1bn year on year, this is largely due to specified factors that the net income of the same period of the previous fiscal year includes a positive impact of JPY249.6bn due to the US tax reform and that net income of the fiscal year that ended in March 2019 includes a negative impact of JPY293.7bn of unrealised gains and losses on securities due to the market deterioration during such fiscal year.”
In Japan, vehicle sales totalled 2,226,177 units, a decrease of 29,136 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by JPY28.6bn to JPY1.6904tn.
In North America, vehicle sales totalled 2,745,047 units, a decrease of 61,420 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by JPY11.9bn to JPY144.1bn.
In Europe, vehicle sales totalled 994,060 units, an increase of 25,983 units, while operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by JPY44.0bn to JPY121.1bn.
In Asia, vehicle sales totalled 1,684,494 units, an increase of 141,688 units, while operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by JPY24.9bn to JPY453.7bn.
In other regions (including Central and South America, Oceania, Africa, and the Middle East), vehicle sales totalled 1,327,017 units, a decrease of 64,714 units, while operating income, excluding the impact of valuation gains/losses from interest rate swaps, decreased by JPY28.5bn to JPY89.5bn.
Financial services operating income increased by JPY37.2bn to JPY322.8bn, including a loss of JPY19.5bn in valuation gains/losses from interest rate swaps. Excluding valuation gains/losses, operating income increased by JPY58.3bn to JPY342.3bn.
For the fiscal year ending 31 March 2020, TMC estimates that consolidated vehicles sales will be 9.0m units.