Toyota's quarterly profits slip-cites reseach,expansion costs,but still record year
05-10-05, 06:09 AM
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Toyota's quarterly profits slip-cites reseach,expansion costs,but still record year
Tuesday, May 10, 2005
Toyota's quarterly profits slip, but it still reports a record year
Automaker cites the cost of reseach and global expansion
Associated Press and Reuters
TOKYO - Toyota Motor Corp.'s fourth-quarter profit dipped, but the world's second-largest automaker said Tuesday that it still posted record earnings for the full fiscal year as sales grew across all key regions.
The company, whose solid results contrast with the struggles of U.S. rivals General Motors Corp. and Ford Motor Co., recorded 290.7 billion yen ($2.8 billion) profit for the quarter ended March 31, down 17 percent from 351.2 billion yen the same period a year ago.
Toyota forecast strong profits for the current fiscal year and said the quarterly slip came from costs of raising overseas production as it prepares another major push to expand its global operations. Quarterly sales rose 4.2 percent to 4.88 trillion yen ($46 billion) from 4.68 trillion yen a year earlier.
"There's bound to be a pause as we invest more for expansion and R&D to secure future growth," President Fujio Cho told a news conference, referring to the fall in fourth-quarter profits.
"We are very proud that the company achieved increases both in revenue and income while continuing to make major investments in our long-term growth."
For the fiscal year, net income for Japan's top automaker grew 0.8 percent to 1.17 trillion yen ($11 billion) from 1.16 trillion yen the previous year. Sales edged up 7.3 percent to 18.55 trillion yen ($176 billion) from 17.3 trillion a year earlier.
Global sales for the fiscal year rose to 7.4 million vehicles, up 10.3 percent from 6.7 million vehicles, with robust sales growth in North America, Europe, Japan and the rest of Asia. Toyota, which does not give consolidated profit forecasts, expects sales to rise to 7.85 million for the year ending in March 2006.
Strong sales combined with 160 billion yen ($1.5 billion) in cost reduction efforts during the latest fiscal year to offset the damage from an unfavorable exchange rate totaling 140 billion yen ($1.3 billion).
The Japanese yen has been rising, a trend that tends to erode the value of overseas earnings for Toyota and other Japanese exporters. The dollar was trading at about 106 yen Tuesday, compared with about 113 yen a year ago.
Sales were strong in all major markets in fiscal 2004. In Japan, where Toyota controls 44.5 percent of the auto market, sales increased by 78,000 vehicles to 2.38 million vehicles on the popularity of the Vitz compact and Crown sedan.
Sales in North America reached 2.27 million vehicles, up by 168,000 vehicles, as demand remained strong for the Prius hybrid, which switches between a gasoline engine and electric motor to deliver good mileage, as well as for Scion cars that target younger drivers.
Last month, Toyota again overtook Chrysler to become the third best-selling brand in the United States behind GM and Ford. Worldwide, Toyota has already surpassed Ford as the second-biggest automaker in annual global vehicle sales, although it still trails GM.
While executives have been mindful that Toyota's runaway success in the United States could trigger a political backlash as homegrown brands struggle, the Japanese auto maker forecast a 7 percent surge in North American sales to 2.43 million this business year.
Toyota has been doing so well in contrast to U.S. automakers that Chairman Hiroshi Okuda has even said he was considering offers of help.
Okuda has said Toyota is willing to consider raising prices on cars in North America to give the U.S. automakers breathing room as well as possibly sharing its hybrid vehicle technology. Toyota and General Motors deny they are already in talks.
Toyota is also looking for sales expansions in Europe, Japan and elsewhere, with total global sales expected to rise 6 percent to 7.85 million units in the year to March 31, 2006.
In the past month alone, Toyota has announced plans to build new factories or expand existing ones in Russia, Thailand and Indonesia, and is mulling a seventh North American plant even as local makers cut back their production.
"It's clear that there's strong demand for Toyota's cars considering that it's planning more factories overseas," said Fujio Ando, senior managing director at Chibagin Asset Management. "I'm not worried about their growth prospects."
source : detnews
Toyota's quarterly profits slip, but it still reports a record year
Automaker cites the cost of reseach and global expansion
Associated Press and Reuters
TOKYO - Toyota Motor Corp.'s fourth-quarter profit dipped, but the world's second-largest automaker said Tuesday that it still posted record earnings for the full fiscal year as sales grew across all key regions.
The company, whose solid results contrast with the struggles of U.S. rivals General Motors Corp. and Ford Motor Co., recorded 290.7 billion yen ($2.8 billion) profit for the quarter ended March 31, down 17 percent from 351.2 billion yen the same period a year ago.
Toyota forecast strong profits for the current fiscal year and said the quarterly slip came from costs of raising overseas production as it prepares another major push to expand its global operations. Quarterly sales rose 4.2 percent to 4.88 trillion yen ($46 billion) from 4.68 trillion yen a year earlier.
"There's bound to be a pause as we invest more for expansion and R&D to secure future growth," President Fujio Cho told a news conference, referring to the fall in fourth-quarter profits.
"We are very proud that the company achieved increases both in revenue and income while continuing to make major investments in our long-term growth."
For the fiscal year, net income for Japan's top automaker grew 0.8 percent to 1.17 trillion yen ($11 billion) from 1.16 trillion yen the previous year. Sales edged up 7.3 percent to 18.55 trillion yen ($176 billion) from 17.3 trillion a year earlier.
Global sales for the fiscal year rose to 7.4 million vehicles, up 10.3 percent from 6.7 million vehicles, with robust sales growth in North America, Europe, Japan and the rest of Asia. Toyota, which does not give consolidated profit forecasts, expects sales to rise to 7.85 million for the year ending in March 2006.
Strong sales combined with 160 billion yen ($1.5 billion) in cost reduction efforts during the latest fiscal year to offset the damage from an unfavorable exchange rate totaling 140 billion yen ($1.3 billion).
The Japanese yen has been rising, a trend that tends to erode the value of overseas earnings for Toyota and other Japanese exporters. The dollar was trading at about 106 yen Tuesday, compared with about 113 yen a year ago.
Sales were strong in all major markets in fiscal 2004. In Japan, where Toyota controls 44.5 percent of the auto market, sales increased by 78,000 vehicles to 2.38 million vehicles on the popularity of the Vitz compact and Crown sedan.
Sales in North America reached 2.27 million vehicles, up by 168,000 vehicles, as demand remained strong for the Prius hybrid, which switches between a gasoline engine and electric motor to deliver good mileage, as well as for Scion cars that target younger drivers.
Last month, Toyota again overtook Chrysler to become the third best-selling brand in the United States behind GM and Ford. Worldwide, Toyota has already surpassed Ford as the second-biggest automaker in annual global vehicle sales, although it still trails GM.
While executives have been mindful that Toyota's runaway success in the United States could trigger a political backlash as homegrown brands struggle, the Japanese auto maker forecast a 7 percent surge in North American sales to 2.43 million this business year.
Toyota has been doing so well in contrast to U.S. automakers that Chairman Hiroshi Okuda has even said he was considering offers of help.
Okuda has said Toyota is willing to consider raising prices on cars in North America to give the U.S. automakers breathing room as well as possibly sharing its hybrid vehicle technology. Toyota and General Motors deny they are already in talks.
Toyota is also looking for sales expansions in Europe, Japan and elsewhere, with total global sales expected to rise 6 percent to 7.85 million units in the year to March 31, 2006.
In the past month alone, Toyota has announced plans to build new factories or expand existing ones in Russia, Thailand and Indonesia, and is mulling a seventh North American plant even as local makers cut back their production.
"It's clear that there's strong demand for Toyota's cars considering that it's planning more factories overseas," said Fujio Ando, senior managing director at Chibagin Asset Management. "I'm not worried about their growth prospects."
source : detnews
05-10-05, 10:01 AM
#3
Lexus Fanatic
Originally Posted by rominl
i heard that lexus isn't selling too well this and past month. i guess they need more new cars 
05-10-05, 12:49 PM
#4
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Join Date: Dec 2004
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Originally Posted by XeroK00L
Yeah...cars are all down except for the new GS. They need to get the new lineup out as soon as they can.
05-10-05, 12:53 PM
#5
Lexus Fanatic
Originally Posted by xioix
i thought camry and corolla are still selling strong as well as the scion line-up, and the new avalon
05-10-05, 12:58 PM
#6
Originally Posted by XeroK00L
My comment was in response to rominl's comment on Lexus's car sales performance. Toyota cars are doing well I know.
05-10-05, 01:13 PM
#7
Originally Posted by AmethySC
Tuesday, May 10, 2005
Automaker cites the cost of reseach and global expansion
Global sales for the fiscal year rose to 7.4 million vehicles, up 10.3 percent from 6.7 million vehicles, with robust sales growth in North America, Europe, Japan and the rest of Asia. Toyota, which does not give consolidated profit forecasts, expects sales to rise to 7.85 million for the year ending in March 2006.
Last month, Toyota again overtook Chrysler to become the third best-selling brand in the United States behind GM and Ford. Worldwide, Toyota has already surpassed Ford as the second-biggest automaker in annual global vehicle sales, although it still trails GM.
Toyota is also looking for sales expansions in Europe, Japan and elsewhere, with total global sales expected to rise 6 percent to 7.85 million units in the year to March 31, 2006.
In the past month alone, Toyota has announced plans to build new factories or expand existing ones in Russia, Thailand and Indonesia, and is mulling a seventh North American plant even as local makers cut back their production.
"It's clear that there's strong demand for Toyota's cars considering that it's planning more factories overseas," said Fujio Ando, senior managing director at Chibagin Asset Management. "I'm not worried about their growth prospects."
Automaker cites the cost of reseach and global expansion
Global sales for the fiscal year rose to 7.4 million vehicles, up 10.3 percent from 6.7 million vehicles, with robust sales growth in North America, Europe, Japan and the rest of Asia. Toyota, which does not give consolidated profit forecasts, expects sales to rise to 7.85 million for the year ending in March 2006.
Last month, Toyota again overtook Chrysler to become the third best-selling brand in the United States behind GM and Ford. Worldwide, Toyota has already surpassed Ford as the second-biggest automaker in annual global vehicle sales, although it still trails GM.
Toyota is also looking for sales expansions in Europe, Japan and elsewhere, with total global sales expected to rise 6 percent to 7.85 million units in the year to March 31, 2006.
In the past month alone, Toyota has announced plans to build new factories or expand existing ones in Russia, Thailand and Indonesia, and is mulling a seventh North American plant even as local makers cut back their production.
"It's clear that there's strong demand for Toyota's cars considering that it's planning more factories overseas," said Fujio Ando, senior managing director at Chibagin Asset Management. "I'm not worried about their growth prospects."
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