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Tuesday, 7th February 2012
In Business In Japan,

Toyota eyes recovery in latest financial results

Toyota has revised its annual profit estimates, predicting recovery following the decrease in sales after the Japanese earthquake in March last year and the floods in Thailand.

Announcing its financial results for the three quarters to December 31st today (February 7th), the world's biggest car manufacturer increased its vehicle sales predictions by 30,000 to 7.41 million units for the full fiscal year that ends on March 31st.

The Japanese carmaker also revised its earnings forecasts for the year in a sign that despite the twin natural disasters in 2011 severely impacting its performance, recovery is well within sight.

Senior managing officer at the Tokyo Motor Corporation, Takahiko Ijichi, said: "Despite cost reduction from company-wide Value Analysis activities and a decrease in fixed cost and expenses, net income decreased, compared to the same period last fiscal year."

This was as a result of reduced sales caused by the earthquake and floods and the continued depreciation of the yen, he added.

Vehicle sales for the nine-month period totalled 4,995 thousand units, Toyota revealed - some 522 thousand less than in the same period in the previous year.

Meanwhile, revenues for the nine months to December 31st fell by 10.2 per cent compared to the same period in 2010, with operating income falling more than 300 billion yen to 117.1 billion.

Currency fluctuations accounted for some 200 billion yen of this figure.

Discussing forecasts ahead of the new fiscal year, Mr Ijichi said that despite the ongoing appreciation of the yen compared to other currencies, the company is committed to improving its earnings structure through cost cutting exercises.

"Toyota will continue to make its utmost effort to achieve re-investment into making even better cars by strengthening its base of business and expanding vehicles sales and earnings as a target under its Global Vision," he said.

Written by Mark Smith

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