The man-made disasters of quality gaffs and safety coverups has been followed by two natural disasters. All hurt Toyota results.
Toyota Motor Corporation (TMC) today announced that net revenues for the first half of the fiscal year totaled ¥8,015.9 billion, a decrease of 17.2% compared to the same period last fiscal year. As a result of production disruptions from the Japan earthquake and tsunami, as well as a strong yen, the largest Japanese automaker saw operating income decreased from ¥323.1 billion to a loss of ¥32.6 billion. Income before income taxes was a loss of ¥1.4 billion. Net income decreased from ¥289.1 billion to ¥81.5 billion.
TMC decided not to announce forecasts for consolidated vehicle sales, net revenues and earnings for the fiscal year ending March 31, 2012. Toyota said that more time is needed to complete an assessment of production and sales plans required by the impact of floods in Thailand, the worst in seven decades. Previously Toyota had forecast sales of 7.6 million units globally.
Thus far Toyota has or will lose about 150,000 units of production due to the ongoing natural disaster in Thailand, though it is only a small fraction of the 689,000 units of production lost because of the earthquake in March. However, production capacity in Thailand is 650,000 units on an annual basis and roughly 100 component parts are affected by the floods.
On a consolidated basis, net revenues for the first half of the fiscal year totaled ¥8,015.9 billion, a decrease of 17.2% compared to the same period last fiscal year. Operating income decreased from ¥323.1 billion to a loss of ¥32.6 billion, while income before income taxes* was a loss of ¥1.4 billion. Net income decreased from ¥289.1 billion to ¥81.5 billion.
“In Japan and North America, vehicle sales decreased severely compared to the same period last fiscal year due to the large impact of the Great East Japan Earthquake. However, in Asia, despite a negative impact from the earthquake, we increased vehicle sales above the same period last fiscal year due to expanding sales in India, Indonesia and Thailand,” said TMC Executive Vice President Satoshi Ozawa on a conference call with analysts and reporters.
In North America – Toyota’s second largest market – vehicle sales totaled 689,000 thousand units, a decrease of 352,000 units compared to the same period last fiscal year. Operating income decreased by ¥84.4 billion to ¥61.5 billion, including ¥15.6 billion of valuation gains/losses on interest rate swaps. Operating income, excluding the impact of valuation gains/losses on interest rate swaps, decreased by ¥109.8 billion to ¥45.9 billion.
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