GM Inside News Forum banner
1 - 2 of 2 Posts

·
Premium Member
Joined
·
14,692 Posts
Discussion Starter · #1 ·
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

 

·
Premium Member
Joined
·
14,692 Posts
Discussion Starter · #13 ·
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.
 
1 - 2 of 2 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top