Toyota's net profit jumps 59.7 percent

[Ming]

Toyota's net profit jumps 59.7 percent in December quarter

TOKYO (AFP) - Toyota, newly installed as the world's second largest auto company, said its group net profit in the December quarter jumped 59.7 percent to 2.7 billion dollars as record North American sales and cost cuts more than offset the impact of a strong yen.

Toyota, which ranks number one in Japan, said net profit rose to 286.5 billion yen (2.7 billion dollars) in the three months to December, with pretax profit growing 43.2 percent from a year earlier to 429.7 billion yen and sales up 8.2 percent to 4.39 trillion yen.

"Our continued growth is mainly due to significant cost reduction efforts as well as the active development of our overseas operations," Toyota Motor Corp. (news - web sites) vice president Ryuji Araki said in a statement Thursday.

Toyota revised its parent-level earnings forecasts for the year to March, putting net profit at 560 billion yen, up from the 510 billion yen projected last November, with recurring profit put at 880 billion yen, up from 780 billion yen, and sales at 8.8 trillion yen, up from 8.7 trillion yen.

Toyota did not provide forecasts on a consolidated basis, which would include all its businesses, but it now looks set to post another record profit for the full year given the nine months to December totalled 810.9 billion yen against 944.67 billion yen in the year to March 2003.

The Toyota group's motor vehicle sales rose 10.1 percent to 1.7 million in the three months to December, with domestic sales rising 9,000 to 554,000 for a market share of 44.4 percent, up 0.8 percentage points.

Consolidated overseas sales increased 14.7 percent to 1.14 million.

"Toyota's North American sales continued to be strong as new models like the Sienna minivan and luxury SUV (sport-utility vehicle) Lexus RX330 ... contributed to a 28,000-vehicle sales increase," the company said.

"As a result, North American retail vehicle sales for 2003 crossed the two million mark for the first time to 2.07 million vehicles and continue to increase at a favourable pace," it said.

In Europe, Toyota registered sales of 218,000 vehicles, up from 170,000 a year earlier.

"Owing to the rapid sales growth in Russia and Eastern Europe, we achieved 830,000 vehicle sales in 2003, two years earlier than the original plan to have annual sales of 800,000 units in 2005," managing director Takeshi Suzuki said at a press conference.

Marketting efforts helped increase operating profit by 100 billion yen and cost reductions added another 60 billion yen, Toyota said.

A stronger yen eroded profits by 80 billion yen with increases in labour and other expenses having a negative impact of 39.6 billion yen, it said.

The yen traded at 109 to the dollar on average in the December quarter, more than 11 percent higher than the year-earlier level of 123 yen.

The strong yen affects exporters such as Toyota adversely as it makes their products more expensive abroad and reduces their yen-denominated income.

"I would say the recent appreciation of the yen towards 105 (against the dollar) is overdone and such a development could have a significant impact on our earnings," Suzuki said, echoing the words of Toyota president Fujio Cho, who last week said the yen's current level "is too high even for us."

http://story.news.yahoo.com/news?tmpl=stor...ta_040205094000

[Randle2I]

What goes up must come down, but I dont see them comming down for a very very very long time. Toyota is on a roll and I dont see GM (or anyone else) stopping them any time soon.

[jro4566]

I agree. Toyota is on a roll and they will be on a roll for many, many years to come. I don't think even GM can stop them now.

[tgagneguam]

It's funny that despite Toyota doing so well, they cannot help but complain about the strong dollar. Oh well, it's been *long* overdue to have the yen rise against the dollar, thus making imports more expensive. Although this won't stop Toyota (far from it), it will at least slow the Japanese juggernaut.

I'm hoping that the US government reciprocates all the other nations in the world when the dollar was strong against most global currencies; in other words, I hope the US does absolutely nothing to stop the weakening dollar. In this way, some Nissans, Toyotas, and Hondas, as well as many/most European makes will cost more. What a shame!

[BigAls87Z28]

man, that mini van is ugly as sin, I dont see wtf other people see I guess. 44% market share in the US? Is that right? If GM can secure 40+% market share(i think there at 38% now?) I think they will remaine larger then Toytota.

[thehollywoodhotel]

if 44% of the buyers are buying Toyota vans, then there can't be really to much wrong in terms of styling!
How many Venture/Montana vans is GM selling. Toyota will take first spot away from GM, and your local GM dealer will still be able to sell you one, even with the new replacements on the way.

Don't get me wrong i am a GM fan, i grew up with GM's but if they aren't careful they are going to have the butts handed to them by Toyota.

the jump dosen't suprise me, it's going to take a lot to stop the freight train that Toyota is right now!

[cyboexpo2002]

Originally posted by thehollywoodhotel@Feb 9 2004, 10:03 PM
if 44% of the buyers are buying Toyota vans, then there can't be really to much wrong in terms of styling!
How many Venture/Montana vans is GM selling. Toyota will take first spot away from GM, and your local GM dealer will still be able to sell you one, even with the new replacements on the way.

Don't get me wrong i am a GM fan, i grew up with GM's but if they aren't careful they are going to have the butts handed to them by Toyota.

the jump dosen't suprise me, it's going to take a lot to stop the freight train that Toyota is right now!

Don't forget Toyota has the advantage of the public associating them with a quality product. So, in their case, styling isn't necessarily what sells it.

[ponchoman49]

Styling can't possibly sell a Toyota! With the exception of the Camry and Corolla the rest of the Toyota line is pretty ugly in general. The Echo is repulsive along with the new Solara and Prius. And most never warmed to the Matrix or Celica either. I guess the trucks look ok for now though. No it's quality that sells a Toyota or perceived quality if you really want to be technical.

[awalbert88]

Originally posted by thehollywoodhotel@Feb 9 2004, 05:03 PM
if 44% of the buyers are buying Toyota vans, then there can't be really to much wrong in terms of styling!
How many Venture/Montana vans is GM selling. Toyota will take first spot away from GM, and your local GM dealer will still be able to sell you one, even with the new replacements on the way.

Don't get me wrong i am a GM fan, i grew up with GM's but if they aren't careful they are going to have the butts handed to them by Toyota.

the jump dosen't suprise me, it's going to take a lot to stop the freight train that Toyota is right now!

Think for a second about who buys minivans. They don't care that much about styling. Chrysler invented that market, but there's honestly not that big a difference from the original minivans to the ones of today. Those who buy a minivan generally care about the following things (in order of importance) - safety, reliability, comfort, price. Ford has held the safety crown for awhile with the Windstar, and now with the Freestar (changing the name was a stupid move), and their advertising has pounded that point home with a lot of buyers. But of course Toyota has this perceived advantage on reliability, so yes, they've gained a lot there.

I'm only vaguely aware of the existance of minivans, as the only reason I'd ever own one is to create a riced-out shaggin' wagon (I know, I'm weird like that).

Back to the main point of this article, however. Toyota is basking in the well-earned glory of all this, but their days as #2 are limited. Mark my words, by the end of 2004, Ford will be back in the rightful #2 spot, and within the decade, Toyota will be a much more distant 3rd (I hold no hopes for a DCX rebound into #3 without some major direction changes for Dodge and Chrysler).

[GnatGoSplat]

I don't know why Toyotas sell so well, they make the ugliest cars on the road today. Camry and Corolla especially. I can't believe people actually like those ridiculous looking headlights that span halfway up the hood.

The best looking Camry was the 92-96. The previous gen Solara was good looking too. It's too bad their current stuff is so hideous.

[paul8488]

my sis is looking for a new car this year, and i'm trying to get her to buy a corolla. she's not really into cars much, but wants something affordable and reliable. she just wants to get in and drive, no questions asked. i'm a GM guy, but for a person like her the corolla is perfect. now if the cobalt was a year into production perhaps... but there's no denying the appeal of a corolla. i'da bought one myself if they weren't so dull looking.

toyota deserves praise... maybe not as much as it gets, but they know how to build (if not style) a car. sure, everyone can come up with a "my buddy had a toyota and it was crap" story... but you can do that for just about every car. perhaps as of late toyota quality is slipping (i keep hearing this 9th place ranking)... hmmmm... i'll have to look into that...

[Hudson]

The article stated that Toyota currently holds about 44% of the Japanese vehicle market. In the US, Chrysler holds the largest share of the minivan market with about 35% of the market, but Toyota is coming on strong with an amazingly good product.

GM currently holds about 28% of the US light-vehicle market, not 40%. Globally, GM has about 15% of the vehicle market, with Toyota coming on fast. I don't see Toyota overtaking GM soon...but give them 10-15 years. Many financial analysts are now saying that Toyota could take the number one global spot in less than 10 years, but I think that's optimistic (and assuming that GM falls fast).

[Ming]

Originally posted by Hudson@Feb 12 2004, 05:26 PM
Many financial analysts are now saying that Toyota could take the number one global spot in less than 10 years, but I think that's optimistic (and assuming that GM falls fast).

Indeed. It also assumes that no other company will be successful at nipping at Toyota's heels in search of Toyota market share.

[mgescuro]

<_<
Toyota sells on quality ALONE. Everyone wants a reliable car. Everyone wants an efficient car. The US has some of the cheapest gas in the world (even at $2.23/gal Super Unleaded in San Francisco), it's cheap.
The fact that Toyota is doing so well without "attractive" car says a lot about their quality initiatives. Furthermore, Toyota is successful because they can make their cars for A LOT cheaper than the competition. So, they can drop the prices of their cars to be more price competitive with their competition AND sell them for a profit instead of a loss or minimal profits. THAT'S the difference.

Toyota can catch General Motors in 5-10 years if GM's rennaisance fails to improve sales and profit margins. However, if GM can maintain an increase in overall sales and start pushing their cars in Europe and in the Asian markets and is successful at doing it, Toyota can't catch GM.

Analysts stated that Toyota would catch Ford by 2005 at the earliest. They were off by 1 year. If Buick can steal sales of the RX330 with the Rendezvous (believe it or not, it is #2 behind the RX) and the SRX-V6 is a big hit with customers, and the Cobalt, Malibu, and G6 are major hits, then all will be will. If they fail to meet demands.... oh well.
<_<

[jro4566]

Originally posted by mgescuro@Feb 13 2004, 01:51 AM
If Buick can steal sales of the RX330 with the Rendezvous (believe it or not, it is #2 behind the RX)...

Ugh, the Rendezvous sells that good!?! :lol: I doubt that the Rendezvous could ever match the RX's sales, especially with the upcoming RX400h. I've had a lot of coworkers telling me how their Lexus dealer tells them that their is a more fuel-efficient RX coming out next year. One thing I hate that Buick did for their "rennaisance" is that they set Lexus as their standard. Come on!!! Who really associates a Buick with a Lexus anyways? Most people consider Lexuses for rich people and Buicks, well, for old people.

Also, I don't understand why everyone cares so much about how Toyota cars look. It's not that big of a deal. Sure they are bland, but they are quiet, reliable, durable, and loaded with features most of the time. Some people critisize the Corolla for being too bland and not appealing to the youth market, along with the Civic. I don't think most 18-year olds care too much about how the car looks when they buy it. They just want a reliable car with a lot of features for their money. Plus, that's what import tuning is for!!! LOL. Also, are people in the midsize segment really looking for something that looks good?? As long as it looks OK, people will buy it. Saying that Toyota is bland and GM is better in styling is highly overrated. Can anyone say Malibu, Aztek, or Rendezvous?? Toyota is bland and GM is only slightly better in the styling department. Styling shouldn't be everyone's priority in buying a car around 25K...your priority should be features, EPA mileage, safety, and room/comfort.