(All consolidated financial information has been prepared in accordance with
accounting principles generally accepted in the United States of America)
Comprehensive FY2014 Second Quarter Financial Materials
On a consolidated basis, net revenues for the period totaled 12.53 trillion yen, an increase of 14.9 percent compared to the same period last fiscal year. Operating income increased from 693.7 billion yen to 1.25 trillion yen, while income before income taxes1 was 1.34 trillion yen. Net income2 increased from 548.2 billion yen to 1.00 trillion yen.
Operating income increased by 561.7 billion yen. Major factors contributing to the increase included currency fluctuations of 540.0 billion yen, cost reduction efforts of 140.0 billion yen and marketing activities of 40.0 billion yen.
Consolidated vehicle sales totaled 4,467,761 units, a decrease of 48,425 units.
Commenting on the results, TMC Executive Vice President Nobuyori Kodaira said: “In addition to the impact of the weaker yen, operating income increased due to our efforts with our suppliers and distributors for profit improvement through cost reduction and marketing activities, such as enhancement of the model mix.”
In Japan, vehicle sales totaled 1,101,206 units, a decrease of 90,724 units compared to the same period last fiscal year. Operating income from Japanese operations increased by 579.1 billion yen to 830.0 billion yen.
In North America, vehicle sales totaled 1,298,044 units, an increase of 37,316 units. Operating income decreased by 20.3 billion yen to 162.3 billion yen, including a loss of 23.2 billion yen of valuation gains/losses from interest rate swaps. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 31.0 billion yen to 185.5 billion yen.
In Europe, vehicle sales totaled 406,934 units, a decrease of 5,232 units, while operating income increased by 13.3 billion yen to 25.4 billion yen.
In Asia, vehicle sales totaled 779,586 units, a decrease of 60,279 units, while operating income increased by 1.1 billion yen to 195.6 billion yen.
In other regions (including Central and South America, Oceania, Africa and the Middle East), vehicle sales totaled 881,991 units, an increase of 70,494 units, while operating income increased by 17.4 billion yen to 76.1 billion yen.
In the financial services segment, operating income decreased by 41.2 billion yen to 133.2 billion yen, including a loss of 29.2 billion yen of valuation gains/losses from interest rate swaps. Excluding valuation gains/losses, operating income increased by 14.7 billion yen to 162.5 billion yen.
TMC maintains the estimate it announced in August this year that its consolidated vehicles sales for the fiscal year ending March 31, 2014 will be 9.1 million units.
In addition, TMC forecasts consolidated net revenue of 25 trillion yen, operating income of 2.20 trillion yen and net income of 1.67 trillion yen for the fiscal year ending March 31, 2014, based on an exchange rate of 97 yen to the U.S. dollar and 130 yen to the euro.
Commenting on the forecasts for FY2014, Kodaira said: “To achieve sustainable growth, we will continue to focus on strengthening our profit structure through continued gross profit improvement per vehicle and control of fixed costs.”
1Income before income taxes and equity in earnings of affiliated companies
2Net income attributable to Toyota Motor Corporation
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.