Toyota records increased profits in the Japanese market.
Toyota’s success seems to know no bounds as the company announced a net profit of 99.9 billion yen, 1.08 billion dollars. The weakening yen and strong US sales have been reaping positive results ahead of the March fiscal year-end.
The yen has dropped 14 percent since November 13, 2012 and Toyota has benefited from having the lion share of the Japanese market, with 1.668 million units sold, ahead of Nissan and Honda. Sales shot up across most markets around the world, with a 13.5 percent increase over the same period in 2011.
Toyota has also cited the success of its marketing activities which generated 660 billion yen ($7.06 billion) and cost reduction efforts which saved 320 billion yen ($3.42 billion) as keys to the company’s increased performance.
The 2012 Toyota Camry. The company was named the world’s top-selling automaker in 2012.
TMC Senior Managing Officer Takahiko Ijichi said, “Our consolidated operating income for the period April through December 2012, 818.5 billion yen ($8.75 billion), reflects our increased vehicle sales and the progress we are making with our profit improvement activities – in spite of a currency exchange rate around the same level as last year. We also managed to secure an unconsolidated operating income of 21.5 billion yen ($230 million) for the same period.”
Over 1 billion dollars was set aside for legal fees related to lowered resale value reported by customers as a result of recalls. Add to that a quarterly operating loss in North America. However, the local market recorded 1.865 million units sold, a total increase of 596,587 units over the total sales for the same period last year.
Toyota turned a profit for the fourth quarter running in Japan, although they did see a falloff in sales of about 5.1 percent.
Quarterly operating profit declined in Europe as that market continues to face a tough period. Vehicle sales in that market totaled 603,000 units, a marked increase of 23,365 units in comparison to the same fiscal period last year.
In China overall Toyota sales have slumped by 4.9 percent. It’s the first time that the brand’s sales have dropped in that country in recent history.
Discussing forecasts for the fiscal year 2013, Ijichi said, “Given increased overseas vehicle sales mostly in North America, progress in our companywide profit improvement activities and the slight weakening of the yen, we have revised upwardly our consolidated forecast for the current fiscal year to 1.15 trillion yen ($12.3 billion) and also forecast a full-year profit on an unconsolidated basis, our first in five years. We believe that our efforts have been bearing fruit and that we are finally on the road to sustainable growth. We will continue our efforts to build ever-better cars and to move forward in a steadfast manner.”
According to Toyota, its annual profit forecast has increased by 10 percent. That means a total of $9.3 billion dollars. The company is also looking to top its record-shattering 9.75 million units sold last year and is aiming for a target of 9.91 million units.