Toyota Motor Corporation Announces First Quarter Financial Results
(All consolidated financial information has been prepared in accordance with
accounting principles generally accepted in the United States of America)
August 02, 2013
Comprehensive FY2014 First Quarter Financial Materials
Toyota City, Japan, August 2, 2013—Toyota Motor Corporation (TMC) today announces financial results for the first quarter ended June 30, 2013.
On a consolidated basis, net revenues for the first quarter totaled 6.2553 trillion yen, an increase of 13.7 percent compared to the same period last fiscal year. Operating income increased from 353.1 billion yen to 663.3 billion yen, while income before income taxes1
was 724.1 billion yen. Net income2
increased from 290.3 billion yen to 562.1 billion yen.
Operating income increased by 310.2 billion yen. Major factors contributing to the increase include currency fluctuations of 260.0 billion yen, cost reduction efforts of 70.0 billion yen, and marketing activities of 30.0 billion yen.
Consolidated vehicle sales for the first quarter totaled 2,231,859 units, a decrease of 36,704 units compared to the same period last fiscal year.
Commenting on the results, TMC Managing Officer Takuo Sasaki said: “Operating income increased due to the impact of foreign exchange rates and our global efforts for profit improvement, through cost reduction activities such as companywide value analysis, and through marketing activities such as enhancement of the model mix and pricing.”
In Japan, vehicle sales totaled 525,777 units, a decrease of 50,893 units compared to the same period last fiscal year. The operating income from Japanese operations increased by 348.9 billion yen to 456.0 billion yen.
In North America, vehicle sales totaled 688,656 units, an increase of 26,309 units compared to the same period last fiscal year. Operating income decreased by 34.9 billion yen to 82.6 billion yen, including a loss of 20.9 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 7.9 billion yen to 103.5 billion yen.
In Europe, vehicle sales totaled 192,511 units, a decrease of 16,336 units, while operating income increased by 1.8 billion yen to 5.2 billion yen.
In Asia, vehicle sales totaled 394,866 units, a decrease of 23,890 units, while operating income increased by 2.5 billion yen to 104.1 billion yen.
In Central and South America, Oceania and Africa, vehicle sales totaled 430,049 units, an increase of 28,106 units, while operating income increased by 15.3 billion yen to 42.5 billion yen.
In the financial services segment, operating income decreased by 35.4 billion yen to 51.2 billion yen compared to the same period last fiscal year, including a loss of 26.9 billion yen of valuation gains/losses on interest rate swaps. Excluding valuation gains/losses, operating income increased by 8.0 billion yen to 78.2 billion yen.
TMC estimates that consolidated vehicles sales for the fiscal year ending March 31, 2014 will be 9.1 million units, which are same as TMC’s forecasts announced in May 2013.
In addition, TMC forecasts consolidated net revenue of 24 trillion yen, operating income of 1.94 trillion yen and net income of 1.48 trillion yen for the fiscal year ending March 31, 2014, based on an exchange rate of 92 yen to the U.S. dollar and 122 yen to the euro.
Commenting on the forecasts for FY2014, Sasaki said: “While paying close attention to the conditions in each market and responding flexibly, we plan to continue our efforts to improve the company’s profit structure.”
Income before income taxes and equity in earnings of affiliated companies
Net income attributable to Toyota Motor Corporation
(Please see attached information for details on financial results. Further information is also available at www.toyota-global.com)
Cautionary Statement with Respect to Forward-Looking Statements
This release contains forward-looking statements that reflect Toyota's plans and expectations. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause Toyota's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. These factors include, but are not limited to: (i) changes in economic conditions and market demand affecting, and the competitive environment in, the automotive markets in Japan, North America, Europe, Asia and other markets in which Toyota operates; (ii) fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen, the U.S. dollar, the euro, the Australian dollar, the Russian ruble, the Canadian dollar and the British pound, and interest rates fluctuations; (iii) changes in funding environment in financial markets and increased competition in the financial services industry; (iv) Toyota’s ability to market and distribute effectively; (v) Toyota’s ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management; (vi) changes in the laws, regulations and government policies in the markets in which Toyota operates that affect Toyota’s automotive operations, particularly laws, regulations and government policies relating to vehicle safety including remedial measures such as recalls, trade, environmental protection, vehicle emissions and vehicle fuel economy, as well as changes in laws, regulations and government policies that affect Toyota’s other operations, including the outcome of current and future litigation and other legal proceedings, government proceedings and investigations; (vii) political and economic instability in the markets in which Toyota operates; (viii) Toyota’s ability to timely develop and achieve market acceptance of new products that meet customer demand; (ix) any damage to Toyota’s brand image; (x) Toyota’s reliance on various suppliers for the provision of supplies; (xi) increases in prices of raw materials; (xii) Toyota’s reliance on various digital and information technologies; (xiii) fuel shortages or interruptions in electricity, transportation systems, labor strikes, work stoppages or other interruptions to, or difficulties in, the employment of labor in the major markets where Toyota purchases materials, components and supplies for the production of its products or where its products are produced, distributed or sold; and (xiv) the impact of natural calamities including the negative effect on Toyota’s vehicle production and sales.
A discussion of these and other factors which may affect Toyota's actual results, performance, achievements or financial position is contained in Toyota's annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission.