Toyota earns $2.9 billion in quarter

[tgagneguam]

Toyota earns $2.9 billion in quarter

By Yuri Kageyama / Associated Press

TOKYO - Toyota Motor Corp. reported Thursday a 4 percent rise in profits for the third fiscal quarter as sales boomed around the world, prompting the Japanese automaker to raise its vehicles sales outlook for the full year.

Toyota's net group profit for the three months ending Dec. 31 totaled 296.5 billion yen ($2.9 billion), up 3.5 percent from 286.4 billion yen the same period a year ago. Sales totaled 4.6 trillion yen ($44 billion) for the period, up 6 percent from 4.4 trillion yen the previous year.

Toyota, the nation's top automaker, exceeded sales targets in every region and offset the negative effects of a lower dollar through cost cuts, the manufacturer, based in Toyota city, central Japan, said in a statement.

In vehicle sales, Toyota sold 1.84 million vehicles globally during the three-month period, up 8 percent from 1.7 million a year ago.

Toyota raised its full fiscal year group vehicle sales forecast, which includes truckmaker Hino Motors and Daihatsu Motor Co., which makes tiny cars, to 7.29 million vehicles, up from the 7.22 million vehicles forecast it gave in November. Toyota sold 6.7 million vehicles around the world the previous fiscal year.

Toyota does not give consolidated net income or sales forecasts.

"Things are going great for Toyota," said Koji Endo, an auto analyst at Credit Suisse First Boston in Tokyo. "The numbers are strong but not spectacularly strong."

Details

[tgagneguam]

Ugh, more good news for Toyota. I suppose they've earned it, but it doesn't mean I have to like it.

[ricers-shaft-big3]

http://waw.wardsauto.com/ar/auto_yel...ne_meets_death

http://waw.wardsauto.com/ar/auto_mod...bate/index.htm

these are old articles but very relevant as some of the seeds of GM's downfall can be found in some of these articles!

it boggles my mind that the UAW actually have a decisive say in the way GM could conduct its business or even in its manufacturing operations! I thought the UAW was all about negotiating wages and benefits for its workers rather than deciding how GM should manufacture its products!

and this says it all: "Toyota Motor Corp. (with one UAW plant) jumped from 7.4% in 1995" ..... ffwd to 2004 .... 12.2%

In 1995, "GM's piece of the U.S. car and truck pie stood at 32.8%, dropping to" ...27.3% in 2004


"Ford Motor Co. and Chrysler Corp. (now DaimlerChrysler Corp.) market shares have hovered in the 23%-25% and 16%-17% range, respectively, since 1995".....at present they are 18.3% and 13%

of course the higher mangement at GM are equally inept! re: the Fiat fiasco and the Saturn fiasco

and ford is little better:... the PAG comes to mind

small wonder that toyota is doing so well! while Ford and GM are busy turning themselves round and round and round, chasing their own tail, toyota is busy marching straight ahead!

thier philosophy is very simple! manufacture high quality, dependable cars at an economical price; continuous improvement in product quality; keep the employees and the customers happy!

and most important

do not squander valuable resources trying to buy junkyards from all over the world!! and once the contract is signed spend even more money trying to then decline the purchase

no wonder toyota makes upwrds of 2.6 billion quarter after quarter from auto manufacturing!

wonder why the others cannot follow the same rule!

[AJR]

"of course the higher mangement at GM are equally inept! re: the Fiat fiasco and the Saturn fiasco

and ford is little better:... the PAG comes to mind

small wonder that toyota is doing so well! while Ford and GM are busy turning themselves round and round and round, chasing their own tail, toyota is busy marching straight ahead!

thier philosophy is very simple! manufacture high quality, dependable cars at an economical price; continuous improvement in product quality; keep the employees and the customers happy!

and most important

do not squander valuable resources trying to buy junkyards from all over the world!! and once the contract is signed spend even more money trying to then decline the purchase

no wonder toyota makes upwrds of 2.6 billion quarter after quarter from auto manufacturing!

wonder why the others cannot follow the same rule!"

I think you nailed it pretty well. This is why I am starting to refer to GM and Ford as "America's 2 Bumbling Auto Companies". I have to shake my head in astonishment at some of the business moves they have made over the years.

The GM fiasco with Fiat reeks of stupidity. Does GM want to buy Fiat? Yes or no? "Duh, we don't know!" So, GM spends all this time on Fiat attracting all kinds of Wall Street attention, goes through most of the buying process, gets cold feet at the end, but is basically trapped. Now, it has to pay $2 Billion to get away from Fiat. Am I understanding the situation correctly? Why did GM think it needed to ADD yet another automaker? Does it think it was not big enough? As for the $2 Billion "fine" to get out of this mess, does GM think money grows on trees?

As for Ford, I thought Bill Ford and the gang were turning the corner based on the new F-150, Mustang, and the last 2 Detroit Auto Shows. There were a host of concepts that Ford could have put into production that would have turned Ford into a hot company. Does Ford do anything with these great concepts? No. Lincoln desperately needs something like the Continental and Zephyr concepts, but Lincoln decides to water down the Zephyr and produce a rebadge F-150 instead. Lincoln's image? Down the drain. Of course, Ford claims it is short on money, but all one has to do is look at PAG and see that it is draining money, resources, and energy away from Lincoln and Mercury. And now with Jaguar in the red again, it is only getting worse. I think it might be time for Ford to take a serious look at selling Jaguar, Land Rover, and Aston Martin. Unless these 3 have paid back Ford's initial investment and are deemed profitable, I don't really see any need for them. They have become a lead weight around Ford, which so desperately needs to become light and agile. I still think Ford was a much better company coming out of the 80s when it was Ford, Lincoln, and Mercury in the United States. Only when it got greedy and arrogant did it decide to buy trophy auto companies.

In comparision, Toyota doesn't seem to be interested in acquiring other companies. It seems to deflect that kind of thinking. Instead, it has emerged as a very focused global auto company that rarely takes its eyes off the ball. It does not get into situations that allow it to be distracted like GM and Ford. Instead, the core of Toyota is quality and manufacturing - the things Detroit is now starting to comprehend. It should not have taken so long.

So now that Detroit is gaining on Toyota in those 2 categories, Toyota has decided it needs to move to another level. Enter Lexus, which showed the world just how good Toyota could be. It also showed what happens if one truly believes in the goal of perfection and customer satisfaction. Toyota knew that for Lexus to make it in the world, it had to be 110% better than the competition. I feel that the Japanese knew this from an internal belief in pride in company and person.

It is a cultural difference between Toyota and Detroit and I hope Detroit changes its ways because Toyota is the real deal - the correct way to run a multinational auto corporation. I just don't know if time is on Detroit's side anymore.

[Boost]

Gm can't stand to lose that worlds biggest auto maker pat on the back.

For GM, the deal was negotiated by then-Chairman Jack Smith and CEO Rick Wagoner. They wanted to block a $12 billion offer from DaimlerChrysler to buy Fiat Auto, as part of a DaimlerChrysler plan to unseat GM as the world's biggest automaker. From AutoWeek

They really must be compensating for something small.

[usa1]

Another sad fact is that Toyota has a market cap great than GM, F, and Daimler Chrysler combined. If it weren't for politics, Toyota could buy up GM with its spare money and shut it down. Amazing.

On the bright side (!?), Google it worth more that GM and F combined. Now that makes a lot of sense. A search engine, that will invariably be replaced by the next better mousetrap by two other guys in a dorm room, is worth more than two of the large companies in the world. Only in America.

Mark

[GeMiNi THRaSHeR]

Originally Posted by ricers-shaft-big3

it boggles my mind that the UAW actually have a decisive say in the way GM could conduct its business or even in its manufacturing operations! I thought the UAW was all about negotiating wages and benefits for its workers rather than deciding how GM should manufacture its products!

small wonder that toyota is doing so well! while Ford and GM are busy turning themselves round and round and round, chasing their own tail, toyota is busy marching straight ahead!

thier philosophy is very simple! manufacture high quality, dependable cars at an economical price; continuous improvement in product quality; keep the employees and the customers happy!

do not squander valuable resources trying to buy junkyards from all over the world!! and once the contract is signed spend even more money trying to then decline the purchase

no wonder toyota makes upwrds of 2.6 billion quarter after quarter from auto manufacturing!

wonder why the others cannot follow the same rule!

Wonder no more. Just so you know, Ford and GM spend more money on their employees healthcare and retirement than they do on STEEL! Thats right, the main ingredient of their car isn't steel, its their employees health. I forget the exact stat, but GM's retirement fund alone adds over $1K to the MSRP of every vehicle they sell.

Unions have been completely detrimental to the overall goal which is to make money, and enough of it to remain competitive with competition.

Its not the squandered resources that are hurting GM and Ford, its the freak'n baby boomers that are.

[ricers-shaft-big3]

Its not the squandered resources that are hurting GM and Ford, its the freak'n baby boomers that are.

no. it is squandered resources! the freaking baby boomers; healthcare pension costs, uaw yadda ydda yadda are all excuses!

the shrinking 2.5 started off by squandering their resources on building low quality, gas guzzling crates in the the 80s which the americans did not want!

they then squandered their resources by hiring CEO's at astromical salaries who in turn did all the negotiations with the UAW which resluted in the creation of a Frankenstein's Monster.

they then squandered money on foreign brands! GM bought Saab which it now wants to close down; this purchase has lost billions; created a cretin called saturn which has lost 15 billion; spent a few billion in buying junkyard in Italy; and now is planning to spend a few more billion trying to decline the purchase!

F spent 15 billion buying jaguar which continues to lose 500 million a year! besides of course dong the same deals with the UAW which the great "general" did!

the baby boomers did the right thing! the only reaon GM and ford have decided to produce quality vehicles is because of the imports and not because of their sudden love for the american consumer!

they are essentilly getting what they deserve; no more and no less

[Globalist]

Originally Posted by usa1

Another sad fact is that Toyota has a market cap great than GM, F, and Daimler Chrysler combined. If it weren't for politics, Toyota could buy up GM with its spare money and shut it down. Amazing.

On the bright side (!?), Google it worth more that GM and F combined. Now that makes a lot of sense. A search engine, that will invariably be replaced by the next better mousetrap by two other guys in a dorm room, is worth more than two of the large companies in the world. Only in America.

Mark

I agree with you. Wall Street valuation system is wrong.

Millions of people (employees, dealers, suppliers and their respective dependents, and all jobs supporting such an economy--housing, transportation, etc) depend on automotive business, and that's a few % of total GDP. That's huge. However, Wall Street decided that the old economy (manufacturing) is less valuable than the new one.

Historically, this economy was like a cruise boat floating in a sea of wealth with huge propulsion engines (manufacturing) that historically did a great job and propulsed this boat to the high sea. In its movement, the boat sucks its own fuel, and the faster the boat cruises the more fuel is trapped, and the more the propulsion engines are fed. Once at the high sea, influential passengers (investors) were hit with a disease called "Short-Termism" which made them develop a preference for ancillary engines onboard--small, tiny engines used for anything else except propulsion--rather than the big engines.

It's crazy to expect an old economy company to have the kind of growth and returns of a software company, and since investors decide how much fuel each engine will get, and since it's taken for granted that the boat will always move, the big propulsion engines were getting less and less fuel (high cost of borrowing, downgrades. etc).

I have problems with the actual valuation used by Wall Street. One thing for sure, it's slowly killing what made the greatness of this country.

Steel industry (already dead), airlines, automotive, even aircraft manufacturers are trying to survive, while a company with almost no assets is more valuable than companies that put food on the table for millions of people. And that's not fair.

I know, I am old fashioned, but that's what I truly think.

[MaxLegroom]

Originally Posted by ricers-shaft-big3

Its not the squandered resources that are hurting GM and Ford, its the freak'n baby boomers that are.

no. it is squandered resources! the freaking baby boomers; healthcare pension costs, uaw yadda ydda yadda are all excuses!

the shrinking 2.5 started off by squandering their resources on building low quality, gas guzzling crates in the the 80s which the americans did not want!

they then squandered their resources by hiring CEO's at astromical salaries who in turn did all the negotiations with the UAW which resluted in the creation of a Frankenstein's Monster.

they then squandered money on foreign brands! GM bought Saab which it now wants to close down; this purchase has lost billions; created a cretin called saturn which has lost 15 billion; spent a few billion in buying junkyard in Italy; and now is planning to spend a few more billion trying to decline the purchase!

F spent 15 billion buying jaguar which continues to lose 500 million a year! besides of course dong the same deals with the UAW which the great "general" did!

the baby boomers did the right thing! the only reaon GM and ford have decided to produce quality vehicles is because of the imports and not because of their sudden love for the american consumer!

they are essentilly getting what they deserve; no more and no less

The sad fact is that what went wrong here isn't a matter of one or the other...it's both! All the factors you've mentioned are true.

As a personal thought here, I'm finding myself thinking today of the old, often misused quote by Chrarles Wilson, then president of General Motors,"What’s good for the country is good for General Motors, and vice versa." Today, I'm considering the matter from a conspiracy theorist point of view. If communists truly wished to bring this country down, they were likely also trying indirect methods. A good one would have been to cripple the American auto industry. The UAW has proven to be the ideal tool to do this, in the end. Let's not forget that Socialists were involved in the early days of the union. Consider this: http://www.socialistworker.org/2004-...ocialism.shtml

I could be wrong about the unions, but the way things go these days, I wonder.

[spudglo08]

isnt wal-mart the biggest company in america?

[idontcareican]

I saw the new Avalon at the auto show. It set a new standard. Everyone, including import brands, had better take a good long look at this car. Its Buicks turn to throw the next punch at Toyota so I hope it lands it. In other words, the Lucerne had better kick some butt or else!

[yoblues]

RIGHT ON! It's easy to blame the Union guys on the line. Working guys seems to be Americas scapegoat for everything. IT AINT THE WORKER BEES FOLKS. ITS THE SUITS. Toyota just made 2.9 Billion recently. If GM/FORD/CHRYSLER were making that kind of money the pension/health care problems would not even be an issue. It's about 25 years of IDIOT SUITS who were raking in the fat paychecks and perks patting themselves on the back thinking they were selling soap powder insted of cars and doing NOTHING except losing market share. Union guys were not designing and approving these cars, it's the suits. Give me PROOF you say! The Germans take over Chrysler and replace the big Chrysler idiot suits with German suits. Here come the cars especially the 300. Ask yourself a question? Do you think the current Ford or GM suits would have approved a Chrysler 300? YES THEY WOULD, as a concept car that would never have seen the light of day. Now they are all scrambling to see if they can build one. Two and a half decades of LOUSY MANAGMENT created this problem not a guy on the assembly line. Can the problem be fixed? YES.....BUT.... What you have to do is tell every upper level suit that the party is over. Listen Mr Vice President of whatever, if your sector does not make us big bucks next year you are GONE. Will that happen....NO..... they will blame the Union guy and lay him off. HMMMMMMMMMMMMM! Mabey Toyota will buy Ford/GM and fire all the suits and we can all live happily ever after.

[AJR]

Originally Posted by yoblues

RIGHT ON! It's easy to blame the Union guys on the line. Working guys seems to be Americas scapegoat for everything. IT AINT THE WORKER BEES FOLKS. ITS THE SUITS. Toyota just made 2.9 Billion recently. If GM/FORD/CHRYSLER were making that kind of money the pension/health care problems would not even be an issue. It's about 25 years of IDIOT SUITS who were raking in the fat paychecks and perks patting themselves on the back thinking they were selling soap powder insted of cars and doing NOTHING except losing market share. Union guys were not designing and approving these cars, it's the suits. Give me PROOF you say! The Germans take over Chrysler and replace the big Chrysler idiot suits with German suits. Here come the cars especially the 300. Ask yourself a question? Do you think the current Ford or GM suits would have approved a Chrysler 300? YES THEY WOULD, as a concept car that would never have seen the light of day. Now they are all scrambling to see if they can build one. Two and a half decades of LOUSY MANAGMENT created this problem not a guy on the assembly line. Can the problem be fixed? YES.....BUT.... What you have to do is tell every upper level suit that the party is over. Listen Mr Vice President of whatever, if your sector does not make us big bucks next year you are GONE. Will that happen....NO..... they will blame the Union guy and lay him off. HMMMMMMMMMMMMM! Mabey Toyota will buy Ford/GM and fire all the suits and we can all live happily ever after.

Yoblues, you read my mind. It was pretty much what I've been thinking for some weeks now. After Daimler bought Chrysler, I got the strange feeling that Detroit's days as car capital were over. DCX and the Japanese are just making fools of GM and Ford by bringing out better products faster and with better quality. Meanwhile, the talking heads at GM and Ford talk tough, but really don't deliver. Those two are so slow in bringing out products, its not even funny. And when they do, they brag like they just invented the car or something. With the "Year of the Car" and "American Revolution", you would think things would slowly change for them, but it hasn't.

I've just about given up hope for Detroit. All the lame products over the years, terrible management, bad news in the media, recalls, bad quality, etc... have taken a toll. If I moved away from my family and friends, I would probably be in a Japanese import by now. I grew up in a strong "buy American" household, but sometimes, you just shake your head and move on. I have never seen Ford and GM so out of touch with the American public, nor have I seen them in such a weak and clueless state at times. These aren't the same larger than life auto companies that used to intimidate the little car companies in the past.

I just shake my head because I think it is a bad reflection on the people in this country, our values (i.e. $ over quality), and our education system (they had to learn business somewhere).

[spudglo08]

yoblues you just put everything ive been trying to say but couldnt put into words.