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Toyota Motor (7203.T) said today that operating income for the first nine months of the Japanese fiscal year decreased, but operating income for the third quarter alone increased with help from a weaker Yen and higher volumes at 2.33 million vehicles, which exceeded the negative effect of soaring materials prices. Toyota’s full-year forecast remains unchanged from the previous forecast, with operating income of ¥2 trillion 400 billion.
During Q3 profit for the three months ended Dec. 31 was ¥956.7 billion (~$7.28 B). During Q3 a year ago Toyota posted a ¥784.4B profit. The effects of foreign exchange rates increased operating income by ¥1 trillion 45 billion as the weaker ¥ boosts the bottom line when profits from abroad are taken home. Cost reduction efforts decreased operating income by ¥940 billion largely due to the impact of soaring materials prices which accounts for ¥1 trillion 110 billion. Marketing efforts increased operating income by ¥300 billion.
Toyota said “we are striving to quickly evaluate alternative semiconductors and respond to design changes in order to secure stable procurement of semiconductors. We are also seeking to shorten the lead time by visualizing the process from order to delivery for each vehicle. We are absorbing the burden on our suppliers caused by the soaring materials and energy prices in order that activities to strengthen competitiveness are installed widely and deeply across the entire supply chain.”
During the first nine months from April to December 2022:
- Consolidated vehicle sales for the period were 6,491,000 units, which was 106.5% of consolidated vehicle sales for the same period of the previous fiscal year.
- Toyota and Lexus brand vehicle sales was at 7,210,000 units, which was 100.8% of such sales for the same period of the previous fiscal year.
Consolidated Financial Results
- Sales revenue of ¥27 trillion 464 billion.
- Operating income of ¥2 trillion 98 billion.
- Income before income taxes of ¥2 trillion 869.2 billion.
- and Quarterly net income of ¥1 trillion 899 billion.
Special Factors
- First, the effects of foreign exchange rates increased operating income by ¥1 trillion 45 billion.
- Second, cost reduction efforts decreased operating income by ¥940 billion largely due to the impact of soaring materials prices which accounts for 1 trillion 110 billion.
- Third, marketing efforts increased operating income by ¥300 billion.
- Fourth, an increase in expenses decreased operating income by ¥415 billion.
- Toyota also incurred a negative impact of ¥423.7 billion due to swap valuation losses and the cost to terminate production in Russia.
As a result, excluding the overall impact of foreign exchange rates, swap valuation gains and losses and other factors, operating income decreased by ¥1 trillion 55 billion year-on-year.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Toyota Profit for Q3 Up 22%. YTD Down
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Toyota Motor (7203.T) said today that operating income for the first nine months of the Japanese fiscal year decreased, but operating income for the third quarter alone increased with help from a weaker Yen and higher volumes at 2.33 million vehicles, which exceeded the negative effect of soaring materials prices. Toyota’s full-year forecast remains unchanged from the previous forecast, with operating income of ¥2 trillion 400 billion.
During Q3 profit for the three months ended Dec. 31 was ¥956.7 billion (~$7.28 B). During Q3 a year ago Toyota posted a ¥784.4B profit. The effects of foreign exchange rates increased operating income by ¥1 trillion 45 billion as the weaker ¥ boosts the bottom line when profits from abroad are taken home. Cost reduction efforts decreased operating income by ¥940 billion largely due to the impact of soaring materials prices which accounts for ¥1 trillion 110 billion. Marketing efforts increased operating income by ¥300 billion.
Toyota said “we are striving to quickly evaluate alternative semiconductors and respond to design changes in order to secure stable procurement of semiconductors. We are also seeking to shorten the lead time by visualizing the process from order to delivery for each vehicle. We are absorbing the burden on our suppliers caused by the soaring materials and energy prices in order that activities to strengthen competitiveness are installed widely and deeply across the entire supply chain.”
During the first nine months from April to December 2022:
Consolidated Financial Results
Special Factors
As a result, excluding the overall impact of foreign exchange rates, swap valuation gains and losses and other factors, operating income decreased by ¥1 trillion 55 billion year-on-year.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.