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Toyota Earnings Soar on Global Sales Surge

Automaker lifts full-year forecast.

by Paul A. Eisenstein on Nov.06, 2018

Strong demand for Lexus, especially in the Chinese market, helped Toyota deliver strong earnings.

Toyota Motor Corp. reported a 28% increase in its net profit for the July-September quarter, earnings buoyed by strong demand in key global markets, including the Americas, Asia and Europe.

The Japanese giant also advised that it expects to see earnings push past earlier forecasts for the full year, in part driven by unexpectedly strong demand in China. Sales of the Lexus brand, have been booming there, despite a slowdown in the overall Chinese market.

Business News!

Sales gains were only one of the factors that propped up Toyota’s bottom line, said Senior Managing Masayoshi Shirayanagi. Referring to aggressive cost-cutting efforts, he said, “We are steadily making progress toward achieving our challenge-level target.”

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Toyota Earnings Jump, Despite Rising U.S. Incentives

Record R&D spending could hurt operating profit.

by Paul A. Eisenstein on May.09, 2018

Toyota CEO Akio Toyoda is not only pushing for automotive sales growth, but leading the company into the emerging mobility sector.

Toyota saw earnings jump 21% between January and March, the final quarter of its fiscal year, despite having to sharply ramp up incentives in a slowing U.S. automotive market.

The automaker reported a profit of 480.8 billion yen, or $4.4 billion, up from 398 billion yen the year before. Toyota’s sales also rose 2% to 7.58 trillion yen, or $69 billion. For the full fiscal year, it earned 2.49 trillion yen, or $23 billion, a 36% increase, with sales rising 6%, to 29.38 trillion yen, or $268 billion.

Beyond the Numbers!

The strong performance helped highlight the cost-cutting efforts initiated by CEO and President Akio Toyoda, the grandson of Toyota’s founder declaring, “We’ve become a leaner, trimmer company … and in the past year we’ve developed our remaining fat into muscle, so that we’re in a strong position to be more competitive.”

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Toyota Earnings Soar as Yen Sinks

Japanese giant raises full-year forecast despite weaker U.S. demand.

by Paul A. Eisenstein on Nov.07, 2017

Sales of the RAV4, including the new hybrid shown here, have picked up while sedan demand tumbles.

A weak Japanese yen translated into strong earnings for Toyota Motor Corp. during the July-September quarter and has the automaker forecasting improved earnings for the current fiscal year despite sliding sales in North America, its key market.

For the second quarter in Toyota’s fiscal year, earnings rose to 481.21 billion yen, or $4.2 billion, compared with 410.77 billion yen a year earlier. Toyota is now forecasting it will earn 1.95 trillion yen during the fiscal year ending next March 31, or $17 billion at the current exchange rate. It delivered earnings of 1.75 trillion yen, or $15 billion last year.

By the Numbers!

Separately, Mitsubishi Motors Corp. delivered an unexpectedly solid profit, reversing the losses its suffered in the wake of revelations that it had cheated on vehicle mileage tests. The resulting scandal led to the small Japanese maker’s takeover by Nissan Motor Co. last year.

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Toyota Net Up, Though Operating Income Falls, Maker Forecasting Big Full-Year Increase

News comes as Japanese giant prepares to unveil new battery-car joint venture with Mazda.

by Paul A. Eisenstein on Aug.04, 2017

Toyota posted an 11% increase in net earnings for the company's first quarter, beating analysts' forecasts.

Toyota Motor Corp. delivered an 11% jump in net earnings on Friday, though the maker said its operating profit tripped by roughly the same percentage during the first quarter of its fiscal year.

The numbers were better than industry analysts had predicted, nonetheless, and the Japanese giant raised by 16% its forecast for net income during the fiscal year ending next March 31, in part due to expectations for a weaker yen.

Financial News!

Toyota’s financial news was all but drowned out, however, by the maker’s confirmation that it will take an equity stake in smaller Japanese maker Mazda Motors Corp. The two companies also are expected to launch a new joint venture to produce electric vehicles while setting up a U.S. assembly plant that will cost $1.6 billion and employ as many as 4,000 workers after it goes into operation in 2021. (more…)

Toyota’s Earnings Take 21% Tumble

But CEO says company’s cars are no longer “boring.”

by Paul A. Eisenstein on May.10, 2017

Toyota's earnings are down again, but at least its cars are less "boring," said CEO Toyoda.

For a second year in a row, Toyota saw its profits tumble, this time by nearly 21%, largely driven by the high cost of propping up demand in a slowing U.S. market.

Earnings were also hammered by unfavorable exchange rates, company officials noted during a media briefing on Wednesday, though at $16.1 billion, or 1.83 trillion yen, Toyota still managed to out-earn its biggest rivals, including General Motors and Volkswagen.

Global News!

But that wasn’t enough to satisfy CEO Akio Toyoda, especially in light of the decline Toyota experienced in the previous fiscal year ending March 31, 2016. “In the sporting world, two years of falling profit would be considered a losing streak, and I hate losing,” he told reporters and analysts.

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Toyota Earnings Tumble on Weak Yen

“No immediate plan” to shift production from Japan to U.S.

by Paul A. Eisenstein on Feb.06, 2017

Strong demand for light trucks like the RAV4 propped up Toyota's sales in the U.S.

A strong yen translated into weaker earnings for Toyota Motor Corp. during the fiscal third quarter, with the impact likely to continue in the months to come, the company anticipating a 26% decline in its net profit for the year ending March 31.

Separately, Toyota officials told reporters that despite comments by CEO Akio Toyoda last month that the automaker will add more jobs in the U.S., there are “no immediate plans” to curb production at Toyota’s factories in Japan which produce about 3 million vehicles annually, many of them bound for America.

Breaking News!

Toyota’s earnings could have slipped even further had it not engaged in aggressive cost-cutting, Managing Officer Tetsuya Otake told reporters during a conference call. Nonetheless, the problem will continue, he said, noting, “We’ve revised our full-year yen forecast to 107 yen to the U.S. dollar from 103 yen, which is the biggest contributing factor to our profit forecast revision.”

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Toyota Tumbles; Operating Profits Plunge 43%

Weakness in North America, currency shifts hammer Japanese giant.

by Paul A. Eisenstein on Nov.08, 2016

The new C-HR could be a critical addition for Toyota.

Toyota Motor Corp.’s operating profit earnings took a 43% plunge during the July to September quarter, the world’s largest automaker struggling in the face of numerous headwinds. Net income, meanwhile, slid 36% for the quarter.

The growing strength of the yen was one problem for the Japanese giant. But the automaker also faced challenges in North America where the overall automotive market is slipping after the strongest recovery in history. Complicating matters, Toyota has been overly dependent on lower-profit passenger cars, such as the Camry and Corolla, as higher-margin trucks have been gaining momentum.

Earnings News!

“Supply has not kept up with demand” for more profitable models like the Toyota RAV4 and Highlander utility vehicles, acknowledged Executive Vice President Takahiko Ijichi, something that has led Toyota to trim its outlook for North America for the rest of the fiscal year ending March 31, 2017.

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Toyota Earnings Slip; Company Cuts Forecast

Strong yen, production problems, sliding margins take a toll.

by Paul A. Eisenstein on Aug.04, 2016

Toyota CEO Akio Toyoda faces pressure to cut costs even as the maker invests in new products.

Snagged by a strong yen, tepid sales and supplier problems, Toyota Motor Corp. delivered a weak profit for the latest quarter, the Japanese giant also warning that the current fiscal year could be its weakest in nearly half a decade.

Toyota, whose global sales slipped behind rival Volkswagen AG for the first half of this year, said it earned $5.1 billion for the April-June quarter, the first in its new fiscal year. That was a decline of 14.5%. Operating earnings, meanwhile, were off 15%, to $5.9 billion.

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By the Numbers!

Net revenues also declined 5.7%, to $60.9 billion, despite a modest 1% increase in global vehicle sales. The maker sold 2.53 million cars, trucks and crossovers for the quarter, but that number was short of expectations due to a series of natural and man-made disasters that impacted production in Toyota’s home market plants.

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Toyota Earnings Up – But Outlook Bleak Going Forward

Japanese giant forecasts 35% profit plunge for current fiscal year.

by Paul A. Eisenstein on May.11, 2016

Toyota's record earnings were overshadowed by some serious concerns going forward.

Even while celebrating yet another record annual profit officials at Toyota Motor Corp. put a bleak face on, warning that profits for the current fiscal year are likely to fall by 35% or more.

The auto industry’s sales leader expects to be hit hard by the growing strength of the Japanese yen. And it also could feel the brunt of plant closures and cutbacks caused by the damaging earthquake that hit the southwestern part of the country last month.

In the Know!

The automaker had been able to drive profits to record levels three years in a row largely due to the “tailwind” of a weak yen said Toyota President and CEO Akio Toyoda. “Since the start of the year, the tide has changed,” he added.

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Toyota Quarterly Earnings Top $5.4 Billion

Net income jumps 5% despite flat sales.

by Paul A. Eisenstein on Feb.05, 2016

Toyota CEO Akio Toyoda unveils the new Lexus LC 500 at last month's Detroit Auto Show.

Toyota managed to pull together a 5% jump in net profits for the third quarter of its fiscal year, despite a tepid global economy and relatively flat sales.

The automaker announced it made 627.9 billion yen, or $5.4 billion, during the October-December period, up from 600 billion yen the year before. Quarterly sales and revenues were up a more modest 2.4%, to $62.7 billion. A weak yen played in Toyota’s favor.

By the Numbers!

The news came two days after rival General Motors reported record earnings of $9.7 billion – for the full fiscal year. Meanwhile, he world’s second-largest automaker, Volkswagen AG, said on Friday it would delay issuing its fourth-quarter and full-year earnings as it struggles to account for the impact of its ongoing diesel emissions cheating scandal.

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