Toyota profits jump as sales grow around the world
11-01-04, 06:31 AM
#1
Super Moderator
Thread Starter
Toyota profits jump as sales grow around the world
Monday, November 1, 2004
By Yuri Kageyama / AP Business Writer
TOKYO - Toyota Motor Corp. reported an 11.4 percent jump in earnings for the first fiscal half Monday, as sales growth in North America, Europe and Japan offset losses from an unfavorable exchange rate.
Group net profit at Japan's top automaker for the six months ended Sept. 30 totaled 584 billion yen ($5.5 billion), up from 524.5 billion yen the same period a year ago. Sales climbed 9.7 percent to 9.0 trillion yen ($85 billion) from 8.2 trillion yen.
The solid results _ record highs for the company _ were enough to counter the negative effects of a strong yen, which pushes down the value of overseas earnings for Japanese exporters like Toyota. The U.S. dollar cost about 110 yen for the first half, compared to about 118 yen a year ago.
The unfavorable exchange rate cost Toyota _ based in Toyoda city, central Japan _ 120 billion yen ($1.1 billion), while cost-cutting efforts added 330 billion yen ($3.1 billion) to its income.
"Our ongoing efforts to introduce products that meet individual customer needs, as well as the optimization of our production organization worldwide, allowed us to grow and improve efficiency in the first half," Toyota Executive Vice President Ryuji Araki said.
During the April-September period, Toyota sold 3.56 million vehicles around the world, up 397,000, or 12 percent, from the same period a year ago.
At a time when rivals are struggling to boost sales at home, Toyota sold more cars during the first half in all key regions, including Japan, North America and Europe. Toyota also increased car sales in Africa and other Asian locations.
Toyota said it expects to sell 7.22 million vehicles for the fiscal year ending March 31, 2005. Toyota does not give consolidated net income or sales forecasts.
Toyota said its market share in the United States reached 12.1 percent, a record high for the automaker. The Prius hybrid, Lexus RX330 luxury car and Scion models that target younger buyers were strong sellers in the U.S. market, according to Toyota.
In Europe, the Corolla and Yaris sedans continued to do well, while the Lexus RX330 and RAV4 sport-utility vehicle also adding to sales.
source : Detroit News Auto Insider
Toyota, which last year leapfrogged Ford Motor to become the world’s biggest car manufacturer by volume after General Motors, said the weak dollar had a Y120bn impact. Meanwhile higher research & development and other expenses cost it a further Y111.5bn. These were more than offset by cost-reduction efforts, which saved Y330bn, the automaker said.
Kurt Sanger, auto analyst at Macquarie Securities in Tokyo, said he was slightly concerned at lower second-quarter profitability in the domestic business despite higher production.
“The question is why domestic profitability did not enjoy the kind of gearing you would expect from an 8 per cent increase in production,” he said, speculating that higher overtime or input costs may have been responsible.
But Mr Sanger said Toyota continued to outpace most rivals, particularly in the US. He was happy to see that the Japanese carmaker, along with its domestic rivals, was increasing R&D spending rather than reining it in to boost short-term profits.
Of his complaints at domestic profitability, he said: “In the end, we’re nit-picking when others are fighting for their lives.”
Sales in the vital North American market rose 8.9 per cent in the half year to end-September, giving it a 12.1 per cent share, helped by demand for its environmentally friendly gasoline-electric Prius hybrid.
Higher sales were achieved in spite of the fact that Toyota spends less than one-quarter of the $4,340 GM spends per vehicle on incentives, according to figures from Autodata.
The Japanese carmaker also lifted sales in Europe by 8 per cent.
In other regions, predominantly Asia, sales rose 35.5 per cent to 859,000 vehicles, though profitability suffered as Toyota stepped up its investment in its International Multipurpose Vehicle project centred on Thailand.
The company raised its pre-tax profit outlook for the year to end-March 2005 from Y830bn to Y890bn.
Source : FT.com
By Yuri Kageyama / AP Business Writer
TOKYO - Toyota Motor Corp. reported an 11.4 percent jump in earnings for the first fiscal half Monday, as sales growth in North America, Europe and Japan offset losses from an unfavorable exchange rate.
Group net profit at Japan's top automaker for the six months ended Sept. 30 totaled 584 billion yen ($5.5 billion), up from 524.5 billion yen the same period a year ago. Sales climbed 9.7 percent to 9.0 trillion yen ($85 billion) from 8.2 trillion yen.
The solid results _ record highs for the company _ were enough to counter the negative effects of a strong yen, which pushes down the value of overseas earnings for Japanese exporters like Toyota. The U.S. dollar cost about 110 yen for the first half, compared to about 118 yen a year ago.
The unfavorable exchange rate cost Toyota _ based in Toyoda city, central Japan _ 120 billion yen ($1.1 billion), while cost-cutting efforts added 330 billion yen ($3.1 billion) to its income.
"Our ongoing efforts to introduce products that meet individual customer needs, as well as the optimization of our production organization worldwide, allowed us to grow and improve efficiency in the first half," Toyota Executive Vice President Ryuji Araki said.
During the April-September period, Toyota sold 3.56 million vehicles around the world, up 397,000, or 12 percent, from the same period a year ago.
At a time when rivals are struggling to boost sales at home, Toyota sold more cars during the first half in all key regions, including Japan, North America and Europe. Toyota also increased car sales in Africa and other Asian locations.
Toyota said it expects to sell 7.22 million vehicles for the fiscal year ending March 31, 2005. Toyota does not give consolidated net income or sales forecasts.
Toyota said its market share in the United States reached 12.1 percent, a record high for the automaker. The Prius hybrid, Lexus RX330 luxury car and Scion models that target younger buyers were strong sellers in the U.S. market, according to Toyota.
In Europe, the Corolla and Yaris sedans continued to do well, while the Lexus RX330 and RAV4 sport-utility vehicle also adding to sales.
source : Detroit News Auto Insider
Toyota, which last year leapfrogged Ford Motor to become the world’s biggest car manufacturer by volume after General Motors, said the weak dollar had a Y120bn impact. Meanwhile higher research & development and other expenses cost it a further Y111.5bn. These were more than offset by cost-reduction efforts, which saved Y330bn, the automaker said.
Kurt Sanger, auto analyst at Macquarie Securities in Tokyo, said he was slightly concerned at lower second-quarter profitability in the domestic business despite higher production.
“The question is why domestic profitability did not enjoy the kind of gearing you would expect from an 8 per cent increase in production,” he said, speculating that higher overtime or input costs may have been responsible.
But Mr Sanger said Toyota continued to outpace most rivals, particularly in the US. He was happy to see that the Japanese carmaker, along with its domestic rivals, was increasing R&D spending rather than reining it in to boost short-term profits.
Of his complaints at domestic profitability, he said: “In the end, we’re nit-picking when others are fighting for their lives.”
Sales in the vital North American market rose 8.9 per cent in the half year to end-September, giving it a 12.1 per cent share, helped by demand for its environmentally friendly gasoline-electric Prius hybrid.
Higher sales were achieved in spite of the fact that Toyota spends less than one-quarter of the $4,340 GM spends per vehicle on incentives, according to figures from Autodata.
The Japanese carmaker also lifted sales in Europe by 8 per cent.
In other regions, predominantly Asia, sales rose 35.5 per cent to 859,000 vehicles, though profitability suffered as Toyota stepped up its investment in its International Multipurpose Vehicle project centred on Thailand.
The company raised its pre-tax profit outlook for the year to end-March 2005 from Y830bn to Y890bn.
Source : FT.com
Thread
Thread Starter
Forum
Replies
Last Post
GFerg
Car Chat
3
05-16-05 05:15 PM