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Posts Tagged ‘toyota profits’

Exchange Rates Drive Toyota’s Profits to a New Record

Currency shifts, cost cuts overcome sales slide.

by on Aug.04, 2015

Sales of the recently redesigned Camry helped Toyota boost sales in North America.

Toyota Motor Co. reported net profits of 646.3 billion yen, or $5.2 billion, for the April-June quarter, a 10% increase, and the maker’s third consecutive record for the quarter. But the numbers barely concealed some fundamental problems facing the Japanese giant.

Worldwide sales were down by almost 6% for the first quarter of the Japanese fiscal year, to 2.1 million, with the maker facing a number of problems across Asia. As a result, Toyota lost its global sales crown for the first half of 2015 to Germany’s Volkswagen AG.

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The sales decline was “a result of weaker sales in Japan,” and emerging markets like China and India, “despite stronger sales in North America,” said Tetsuya Otake, managing officer of Toyota, during a telephone news briefing.


Toyota Rounds Out Year with $19.8B in Net Income

Japanese maker takes global sales hit.

by on May.08, 2015

Toyota's Akio Toyoda said the company's strong profits were due to cost-cutting efforts and a weak yen.

Toyota’s full-year financial results are the very definition of getting more from less as the company’s net income rose nearly 20% while its vehicle sales dropped globally.

The company’s fiscal year ends March 31, and it reported net income of $19.8 billion – a 19.2% jump – on revenue of $248 billion, which is an increase of 6%. The company’s operating income was also up 20% to $25.1 billion.

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The maker finished its year with a flourish. Its fourth-quarter net income rose to $3.73 billion, from $2.48 billion from the year-ago period. Operating profit jumped 46% to $5.31 billion compared with $3.65 billion. Toyota’s revenue increased 8.4% to $59.52 billion in the period. (more…)

Toyota Profit Beats Expectations as Maker Ups Earnings Forecast

Weak yen helps, but problems in China and home market persist.

by on Feb.04, 2015

Toyota is hoping the next-gen Tacoma will keep the good times rolling sales-wise in the U.S. in 2015.

Toyota Motor Co. delivered a 14% increase in earnings during the most recent quarter, outstripping analysts’ expectations. The maker also said it is raising its forecast for the full fiscal year, even though it cut the estimate of how many vehicles it will sell.

Toyota delivered net earnings of 600 billion yen, or $5.1 billion, between October and December – the third quarter in its fiscal year. Industry analysts surveyed by FactSet had anticipated a profit of 540 billion yen, or $4.6 billion.

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The Japanese maker – which remained the world’s best-selling automotive manufacturer in 2014 – credited several factors for the strong performance, including the lift it got from the weakening yen, as well as cost-cutting efforts. (more…)

Toyota Beats Earnings Estimates on Strong Sales

Maker ups forecast for the rest of the fiscal year.

by on Nov.05, 2014

Toyota reports quarterly profits of $4.2 billion: an increase of 12.6%.

With its sales on track to remain number one in the industry, Toyota Motor Co. saw its worldwide net income jump 12.6% for the first half of the fiscal year, to $10.9 billion, while income for the July to September quarter rose to $4.2 billion, exceeding industry analysts’ expectations.

The maker credited several factors, including strong demand for its vehicles in most markets, though it did see some declines in the home Japanese market and some other parts of Asia. The weak yen also contributed to the maker’s performance during the second quarter of the year – as it did for Japanese rivals Nissan and Honda.

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Toyota said it now anticipates net income for the full fiscal year ending next March 31 to reach $19.2 billion, though sales dip slightly. (more…)

Toyota Freezing Plant Construction

Maker reportedly ordering 3-year hold.

by on Jan.10, 2013

According to a new report, Toyota wants to improve the efficiency of existing plants, not add new ones.

Toyota is planning to halt the construction of new plants around the world for at least the next three years, according to reports coming out of Japan. The decision represents a shift from Toyota’s previous policy of building new plants almost annually.

Officials from the Japanese auto giant have not commented directly on the reports. “I cannot discuss our business plans, but we consider it important to boost investment efficiency to secure medium-to- long-term growth,” a Toyota spokesman said.

Toyota, which last year again became the world’s largest automaker, would concentrate its capital investment on existing factories, the Nikkei business daily said.

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The company could officially announce the decision in a new management plan to be released in the coming months, Jiji Press said, as part of an overall effort to increase efficiency and cut costs. Like other Japanese carmakers, Toyota has been under intense pressure to control costs because of the steady increase in the valuation of the yen.


Toyota Quadruples Quarterly Earnings

After series of setbacks, CEO Toyoda sees strong turnaround.

by on May.09, 2012

Toyota CEO Akio Toyoda sees a positive future.

Toyota Motor Co. wrapped up one of the worst fiscal year’s in the company’s history with an unexpectedly strong final quarter in which it saw earnings more than quadruple.

Acknowledging the hardships faced since the disastrous earthquake and tsunami – which cost the maker 100s of thousands of units of lost production – Toyota President Akio Toyoda offered a more positive outlook for the future, though he cautioned there are still challenges ahead.

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“Thanks to the concerted efforts of our employees, suppliers and dealers, we were able to recover production and sales faster than anticipated and achieved a strong result,” said Toyada, grandson of the automaker’s founder. “Our vision,” he added, “is to establish a strong business foundation that will ensure profitability under any kind of difficult business environment.”


Toyota Profits Plunge as New Challenges Threaten Future Earnings

Maker withdraws future guidance as parts shortages worsen in wake of Thai flooding.

by on Nov.08, 2011

Toyota CEO Akio Toyoda at the launch of the Lexus GS in Pebble Beach last August.

Toyota reported a sharp 18.5% downturn in its latest quarterly earnings, largely the result of parts and product shortages caused by the earthquake and tsunami that struck northeastern Japan last March.  But the maker warned it is facing new challenges ahead.  On an operating basis, the maker said it lost $418 million for the first half of its fiscal year, compared with a $4.1 billion profit a year ago.

In a presentation from Tokyo, Toyota officials withdrew their earlier guidance for the rest of the fiscal year – which ends on March 31, 2012 – due to the potential havoc the company faces in the wake of the flooding that struck Thailand last month.  That has disrupted supplies of both vehicles and parts, resulting in new production cuts at Toyota plants around the world.

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Further complicating matters, the yen continues to gain strength against the dollar and other major currencies. The current exchange rates are “far beyond what is tolerable,” Toyota CEO Akio Toyoda said earlier in the week, warning that if the trend isn’t reversed Japan’s manufacturing base could be “destroyed.”


Toyota Tells Suppliers to Gear Up

Despite recent problems, the maker is planning on big growth.

by on Aug.03, 2011

Toyota will count on an array of new products, including an update to the Camry, to help drive big sales growth in 2012.

Even as it prepared to report a 99% drop in its global earnings, Toyota was telling its worldwide supplier network to buckle up and get ready for a fast ride as it lays out plans for record production — backed by one of the most aggressive product roll-outs in its history.

Reports out of Tokyo indicate that the Japanese giant intends to come back from the setbacks of the last two years by launching a big growth effort that could boost production to a record 8.9 million in 2012.  That would be nearly a million more than Toyota said, on Tuesday, it will build this year.

It has been a tough couple years for the maker – which is expected to lose its crown as the world’s largest automotive manufacturer this year.  In 2010, it was hammered by a series of safety-related problems, at one point idling a number of plants to make repairs.  This year, Toyota has been struggling to overcome the effects of the March 11 Japanese earthquake and tsunami which – during the first quarter of its fiscal year alone – cost it nearly 600,000 units in lost production.

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But Toyota officials tell that they are moving ahead on the global expansion program announced by CEO Akio Toyoda – ironically just days before the Japanese disaster.  And now, the maker confirms, it is telling its suppliers to get ready to support the push.

According to a report in Japan’s Kyodo News, Toyota plans to boost production at its Japanese assembly network to 3.5 million in 2012, adding another 5.4 million vehicles at “transplant” assembly lines in the U.S., Europe, China and other parts of the world.


Nissan Forecasts Record Sales but Declining Profits

Maker likely least hurt by March disaster among major Japanese brands.

by on Jun.23, 2011

Nissan CEO Carlos Ghosn, shown with a Nissan Leaf, forecasts an unexpectedly good year..

Like its major Japanese rivals, Toyota and Honda, the March 11 earthquake and tsunami will take a substantial toll on Nissan’s earnings for the current fiscal year, the maker forecast today – but Nissan officials also predicted that their company will experience another year of record sales despite a substantial cut in production in the weeks following that disaster.

Nissan’s strong reliance on overseas assembly plants – and suppliers outside Japan – helped minimize the impact of the disaster, the company has suggested, allowing it to resume production faster than those competitors, especially Toyota, which continues to base a large portion of its production operations in the home Japanese market.

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Nissan’s net profit is now projected to slip 15.4%, to ¥270 billion, or $3.4 billion, down from ¥319 billion in the previous fiscal year, which ended March 31.  On the other hand, revenues are expected to climb 7.1%, to ¥9.4 trillion.  The maker, meanwhile, said it would double its dividend to ¥20 per share this year.


Honda Forecasts 63% Drop in Profits

Earnings amidst the devastation.

by on Jun.14, 2011

Shortages of the Honda Civic will contribute to the maker's plunge in profits for the fiscal year.

Just days after its rival, Toyota, projected it would see a huge plunge in profits as the result of the March 11 Japanese earthquake, Honda Motor Co. says it also will take a devastating hit to its bottom line, with earnings for the current fiscal year likely to plunge by 63.5%.

Honda – like Toyota – delayed its forecast for the fiscal year running through March 2012 while it assessed the impact of the earthquake and subsequent tsunami, which shut down most of its home market production for a month.

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Honda now expects to have most of its factories back up to speed sooner than initially anticipated, but several key operations, including the plants producing the critical new 2012 Civic, will be operating below capacity until autumn.

Honda anticipates the current fiscal year will see profits of 195 billion yen ($2.4 billion), down by nearly two-thirds from the 534 billion yen recorded during the fiscal year that ended last March 31.