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Toyota Earnings Slip; Company Cuts Forecast

Strong yen, production problems, sliding margins take a toll.

by on Aug.04, 2016

Toyota CEO Akio Toyoda faces pressure to cut costs even as the maker invests in new products.

Snagged by a strong yen, tepid sales and supplier problems, Toyota Motor Corp. delivered a weak profit for the latest quarter, the Japanese giant also warning that the current fiscal year could be its weakest in nearly half a decade.

Toyota, whose global sales slipped behind rival Volkswagen AG for the first half of this year, said it earned $5.1 billion for the April-June quarter, the first in its new fiscal year. That was a decline of 14.5%. Operating earnings, meanwhile, were off 15%, to $5.9 billion.

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Net revenues also declined 5.7%, to $60.9 billion, despite a modest 1% increase in global vehicle sales. The maker sold 2.53 million cars, trucks and crossovers for the quarter, but that number was short of expectations due to a series of natural and man-made disasters that impacted production in Toyota’s home market plants.


Toyota Earnings Up – But Outlook Bleak Going Forward

Japanese giant forecasts 35% profit plunge for current fiscal year.

by on May.11, 2016

Toyota's record earnings were overshadowed by some serious concerns going forward.

Even while celebrating yet another record annual profit officials at Toyota Motor Corp. put a bleak face on, warning that profits for the current fiscal year are likely to fall by 35% or more.

The auto industry’s sales leader expects to be hit hard by the growing strength of the Japanese yen. And it also could feel the brunt of plant closures and cutbacks caused by the damaging earthquake that hit the southwestern part of the country last month.

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The automaker had been able to drive profits to record levels three years in a row largely due to the “tailwind” of a weak yen said Toyota President and CEO Akio Toyoda. “Since the start of the year, the tide has changed,” he added.


Toyota Quarterly Earnings Top $5.4 Billion

Net income jumps 5% despite flat sales.

by on Feb.05, 2016

Toyota CEO Akio Toyoda unveils the new Lexus LC 500 at last month's Detroit Auto Show.

Toyota managed to pull together a 5% jump in net profits for the third quarter of its fiscal year, despite a tepid global economy and relatively flat sales.

The automaker announced it made 627.9 billion yen, or $5.4 billion, during the October-December period, up from 600 billion yen the year before. Quarterly sales and revenues were up a more modest 2.4%, to $62.7 billion. A weak yen played in Toyota’s favor.

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The news came two days after rival General Motors reported record earnings of $9.7 billion – for the full fiscal year. Meanwhile, he world’s second-largest automaker, Volkswagen AG, said on Friday it would delay issuing its fourth-quarter and full-year earnings as it struggles to account for the impact of its ongoing diesel emissions cheating scandal.


Weak Yen Equals Strong Earnings for Toyota

But Japanese giant cuts global sales outlook.

by on Nov.05, 2015

The 2016 Toyota Prius will be the first model to use the Toyota New Generation Architecture.

The world’s largest automaker delivered the industry’s biggest profit for the July to September quarter, earnings for Toyota Motor Corp. rising 13.5% to 611.7 billion yen, or $5.0 billion, despite decreased sales and increased spending.

Toyota saw global sales slip by 42,000 vehicles, to 2.48 million, during the second quarter of its fiscal year, the decline coming in Europe, Japan and other parts of Asia. Even so, it generated 7.1 trillion yen, or $58.5 billion, an 8% increase in revenues.

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TMC Managing Officer Tetsuya Otake credited, “progress in cost reduction and other profit improvement activities, in addition to favorable foreign exchange rates.” The cheap yen added about 160 billion yen, or $1.3 bilion, to Toyota’s bottom line for the quarter.


Toyota Earnings Up Over 500% on Weaker Yen

Japanese giant raises forecast – but also faces some problems.

by on Feb.04, 2014

The Prius has helped drive Toyota sales worldwide.

The world’s largest automaker has now posted the industry’s largest profit for the final quarter of 2013, Toyota Motor Co. earnings increasing by more than 500%, much of that momentum driven by the weak yen.

Toyota earned 525.4 billion yen, or $5.2 billion, for the October-December period, the third quarter of the Japanese fiscal year, up from 99.9 billion yen a year earlier.  The maker’s quarterly sales, meanwhile, surged by 24%, to 6.6 trillion yen, or $64.2 billion.

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Toyota’s earnings handily exceeded the 437 billion yen, or $4.3 billion, consensus forecast of industry analysts polled by tracking firm FactSet.  That’s a sharp shift from recent days during which a number of key corporations have fallen short of industry estimates, driving a sharp sell-off of stocks in Asia and on other markets around the world.


Sales Down But Earnings Up for Toyota

Japanese giant benefits from cost-cutting, weak yen.

by on Nov.06, 2013

Toyota is counting on the new Corolla to help it boost earnings in the months ahead.

Toyota Motor Co.’s quarterly earnings soared by 70% despite slightly softer sales, reflecting the Japanese giant’s cost-cutting efforts as well as the impact of the weak yen.

Toyota increased its earnings forecast for the full fiscal year after posting a $438.4 billion yen, or $4.4 billion, profit for the July – September period, up from 257.9 billion yen a year ago. The world’s largest automaker now expects to generate a 1.67 trillion yen profit for the fiscal year that ends on March 31, 2014.

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“In addition to the impact of the weaker yen, operating income increased due to our efforts with our suppliers and distributors for profit improvement through cost reduction and marketing activities, such as enhancement of the model mix.,” said Nobuyori Kodaira, Toyota’s executive vice president, in a statement.


Toyota Earnings Nearly Double

Strong sales surge also put it #2 spot in U.S. market.

by on Aug.02, 2013

Toyota CEO Akio Toyoda, shown here during the launch of the Lexus GS, wants more "passion" in the maker's products.

It’s been a great week for Toyota Motor Co. A day after revealing a strong sales surge that positioned it – at least briefly – as the number two maker in the U.S. market, the Japanese giant announced that earnings for the April – June quarter nearly doubled year-over-year.

The 93% increase reflects a variety of factors, including the impact of the weakening yen, and came despite continued challenges in China, the world’s largest automotive market. The strong performance during the first quarter of Toyota’s fiscal year led the automaker to up its forecast for the months ahead. But Toyota officials did sound at least a small note of caution.

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Toyota beat estimates for both its first-quarter profit and sales, based on a consensus gathered by FactSet. April – June earnings came in at 562.1 billion yen, or $5.6 billion. Revenues were up 13.7%, meanwhile, to 6.25 trillion yen.

That encouraged the maker to boost its full-year earnings forecast to 1.48 trillion yen, which would be a 54% year-over-year gain. And Toyota now expects to reach an all-time industry record for production, at 10.1 million. It expects sales to be a slightly more modest 9.96 million, a target it had announced previously.


Is Toyota Facing Financial Trouble?

Japanese giant receives unexpected warning.

by on May.31, 2013

Toyota boss Akio Toyoda with the Lexus ES.

There was a time when Toyota was said to have “more money than God by one of its key competitors. And its latest earning report was unquestionably impressive. Nonetheless, the Japanese giant has received an unexpected warning that could signal financial troubles ahead.

Though Moody’s has given Toyota’s latest bond offering a strong “Aa3 rating,” it also has issued a negative outlook for the future that reflects potentially broader problems with the Japanese economy.

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“While disruptions caused by several natural disasters contributed to (a) period of underperformance, the company’s financial results have also suffered from product quality issues, market share erosion, and cost pressures exacerbated by volatile market conditions,” the ratings agency explains. “Because it is more reliant than its peers on units and components exported from Japan, Toyota’s earnings have significantly weakened because of the fluctuation in the currency market since the financial crisis of 2008-09.”


Toyota Now Hopes to Triple Earnings

Maker optimistic as yen weakens, U.S. sales rise.

by on Feb.05, 2013

An assortment of new models, including the latest Avalon sedan, have helped drive Toyota's surge.

Toyota has substantially increased its earnings forecast for the current fiscal year, predicting profits now will triple when compared with what it delivered in the wake of the March 2011 Japanese earthquake and tsunami that nearly shut the maker down.

The maker has issued an advisory that it will deliver a net profit of 860 billion yen, or $9.3 billion for the current financial year, which runs through March 31st. It had previously anticipated earnings of 780 billion yen, or $8.5 billion.

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“We believe that our efforts have been bearing fruit and that we are finally on the road to sustainable growth,” said Takahiko Ijichi, senior managing officer at Toyota.

A variety of factors appear to be contributing. Of course, it helps to have gotten its factories back up and running after the shortages of 2011 which cost it 100s of thousands of units of lost production. But it doesn’t hurt, either, that demand has been soaring, especially in the key North America market.


Toyota Triples Earnings

Maker forecasts $10 billon profit for full year.

by on Nov.05, 2012

Toyota hopes to keep its momentum going with new products like the completely redesigned Avalon.

Toyota Motor Co. tripled its net earnings for the July – September quarter as it continued recovering from last year’s devastating Japanese earthquake and tsunami.

The huge jump – which saw the maker’s profit jump to 257.9 billion yen, or $3.2 billion, well in excess of analysts’ consensus forecasts — came despite lopsided exchange rates and the impact of a boycott in China. And it encouraged to maker to forecast that net earnings for the full year will now reach $9.8 billion, up from an earlier forecast of $9.5 billion.

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“We have revised the forecast we announced at the end of the first quarter to reflect the progress we have been making,” said Executive Vice President Satoshi Ozawa.

Toyota operates on a fiscal year ending March 31st, so the latest earnings mark the end of the first half of that year during which it saw profits surge 572.1% compared to year-earlier levels.