Toyota Posts Fiscal Year Profit of $5 Billion, but Q4 Dives

Toyota Motor Corporation (TMC) today announced that net revenues for the fiscal year ended 31 March 31 2011 were 18.993 trillion yen, an increase of 0.2% compared to the previous fiscal year as Japan’s largest automaker continues to struggle to return to pre-2008 levels of return. TMC operating income increased from 147.5 billion yen to 468.2 billion yen, while net income increased from 209.4 billion yen to 408.1 billion yen, or $5.1 billion.

Consolidated vehicle sales for the fiscal year totaled 7.308 million units, an increase of 71,000 compared to the previous fiscal year, lagging industry growth in gradually recovering markets. Toyota sales declined in North America, Europe and Japan.

During the fourth quarter (January – March 2011) Toyota’s profit dropped to 25.4 billion yen (~ $314 million) from 112.2 billion yen a year earlier. During Q4 Toyota sold 1.79 million vehicles globally, which means it is in third place behind General Motors at 2.22 million vehicles and Volkswagen Group at 1.99 million.

Toyota estimated the negative impact from the Japan Earthquake in early March at about 100 billion yen, $1.2 billion for Q1, with the production loss of 170,000 units. In total the earthquake resulted in the loss of the production of 900,000 vehicles thus far.

In a stock exchange filing Toyota said  full-year consolidated and unconsolidated financial results for FY2011 decreased from the previously announced forecasts mainly due to the suspension of  vehicle production and the decrease in vehicle sales caused by the Japan Earthquake.

TMC will not announce forecasts for consolidated vehicle sales, net revenues and earnings for the fiscal year ending March 31, 2012, until mid June as more time is needed to complete a revised production and sales plans due to the impact of the Great East Japan Earthquake, according to a statement from president Akio Toyoda, which was read during an earnings conference call for analysts and media.

“Our business environment continued to be challenging due to yen appreciation among others,” Toyoda said.

TMC also announced a year-end dividend of 30 yen per share, to be proposed at the general shareholders meeting in June.

In Japan, vehicle sales were 1.913 million units, a decrease of 250,000 vehicles compared to the last fiscal year. Operating income from Japanese operations decreased by 137.2 billion yen, to a loss of 362.4 billion yen.

In North America, vehicle sales totaled 2.031 million units, a decrease of 67,000 units compared to the last fiscal year. Operating income increased by 254.1 billion yen to 339.5 billion yen, including 27.6 billion yen of valuation gains/losses on interest rate swaps. Operating income, excluding the impact of valuation gains/losses on interest rate swaps, increased by 257.8 billion yen to 311.9 billion yen.

In Europe, vehicle sales were 796,000 units, a decrease of 62,000 units, while operating income improved by 46.1 billion yen, to 13.1 billion yen.

In Asia, vehicle sales were 1.255 million units, an increase of 276,000 units, while operating income increased by 109.4 billion yen, to 313.0 billion yen.

In Central and South America, Oceania and Africa, vehicle sales were 1.319 million units, an increase of 174,000 units, while operating income increased by 44.6 billion yen to 160.1 billion yen.

In the financial services segment, operating income increased by 111.3 billion yen, to 358.2 billion yen compared to the previous fiscal year, including 37.4 billion yen of valuation gains/losses from interest rate swaps. Excluding valuation gains/losses, operating income increased by 104.9 billion yen to 320.8 billion yen. The increase was mainly due to increased earnings as a result of decreased expenses related to loan and residual losses, as well as increased lending balance mainly in the United States.

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