Toyota profits up 23% on high US sales, despite mounting legal costsTue, 05 Feb 2013 18:01:00 ESTToyota earned $9.3 billion in net income in the financial year that ends next month. The number beats earlier forecasts and marks a five-year high for the automaker, with both operating income and revenue up by 9.5 percent and 2.5 percent, respectively. Toyota saw quarterly profit enjoy a year-on-year jump of 23.4 percent, with the manufacturer earning more than $1 billion between October and December 2012. The good news comes in spite of the fact that the Japanese automaker actually endured an operating loss in North America, due in part to legal fees.
Toyota is set to pay more than $1 billion to owners who claim their vehicles decreased in value as a result of the company's recent spate of recalls. Even so, all three of the automaker's brands enjoyed a 13.5 percent sales increase in the US in the last quarter, beating the industry average. Toyota faltered in Europe, however, where it earned $99 million in operating profit last year, compared to $111 million in 2011. You can take a closer look at the company's full press release below for more information.
Toyota Motor Corporation Announces Financial Results for the Nine-month Period Ended December 31, 2012
(All consolidated financial information has been prepared in accordance with
accounting principles generally accepted in the United States of America)
Toyota City, Japan, February 5, 2013-Toyota Motor Corporation (TMC) today announces
its financial results for the nine-month period ended December 31, 2012.
On a consolidated basis, net revenues for the period totaled 16.2 trillion yen, an increase
of 26.0 percent compared to the same period last fiscal year. Operating income increased
from 117.1 billion yen to 818.5 billion yen, an increase of 701.3 billion yen, while income
before income taxes1 was 925.7 billion yen. Net income2 increased from 162.5 billion yen
to 648.1 billion yen.
Major factors contributing to the increase in operating income include the positive effects
from marketing activities generating 660.0 billion yen and cost reduction efforts saving
320.0 billion yen.
Consolidated vehicle sales for the nine months totaled 6.629 million units, an increase of
1.634 million units compared to the same period last year.
Commenting on the results, TMC Senior Managing Officer Takahiko Ijichi said: "Our
consolidated operating income for the period April through December 2012, 818.5 billion
yen, reflects our increased vehicle sales and the progress we are making with our profit
improvement activities-in spite of a currency exchange rate around the same level as
last year. We also managed to secure an unconsolidated operating income of 21.5
billion yen for the same period."
In Japan, vehicle sales totaled 1.668 million units, an increase of 310,564 units compared
to the same period last fiscal year. Operating income from Japanese operations
increased by 572.9 billion yen to 266.4 billion yen.
In North America, vehicle sales totaled 1.865 million units, an increase of 596,587 units
compared to the same period last fiscal year. Operating income increased by 13.6 billion
yen to 165.4 billion yen, including 31.3 billion yen of valuation gains/losses on interest
rate swaps. Operating income, excluding the impact of valuation gains/losses on interest
rate swaps, increased by 19.7 billion yen to 134.1 billion yen.
In Europe, vehicle sales totaled 603 thousand units, an increase of 23,365 units
compared to the same period last fiscal year, while operating income increased by 12.7
billion yen to 21.3 billion yen.
In Asia, vehicle sales totaled 1.267 million units, an increase of 373,635 units compared
to the same period last fiscal year, while operating income increased by 115.2 billion yen
to 286.3 billion yen.
In Central and South America, Oceania and Africa, vehicle sales totaled 1.226 million
units, an increase of 329,698 units compared to the same period last fiscal year, while
operating income decreased by 4.9 billion yen to 91.0 billion yen.
In the financial services segment, operating income decreased by 10.9 billion yen to
243.5 billion yen compared to the same period last year, including 27.7 billion yen of
valuation gains/losses on interest rate swaps. Excluding valuation gains/losses,
operating income decreased by 10.5 billion yen to 215.8 billion yen. This was mainly
due to a lower reversal of provisions for loan and residual losses in comparison to the
same period last year.
TMC also today revises its consolidated vehicles sales forecast for fiscal year 2013 from
8.750 million units to 8.850 million units, an increase of 100,000 units from the previous
forecast announced in November 2012, due to the increased overseas vehicle sales,
mostly in North America.
TMC also upwardly revises its consolidated financial forecasts for fiscal year 2013 to
consolidated net revenue of 21.8 trillion yen, operating income of 1.15 trillion yen, income
before income taxes of 1.29 trillion yen and net income of 860.0 billion yen, with the
revision of an exchange rate of 81 yen to the U.S. dollar and 104 yen to the euro.
Commenting on the forecasts for fiscal year 2013, Ijichi said: "Given increased overseas
vehicle sales mostly in North America, progress in our companywide profit improvement
activities and the slight weakening of the yen, we have revised upwardly our consolidated
forecast for the current fiscal year to 1.15 trillion yen and also forecast a full-year profit on
an unconsolidated basis, our first in five years. We believe that our efforts have been
bearing fruit and that we are finally on the road to sustainable growth. We will continue
our efforts to build ever-better cars and to move forward in a steadfast manner."
1Income before income taxes and equity in earnings of affiliated companies
2Net income attributable to Toyota Motor Corporation
By Zach Bowman
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