The major financial parts of the annual report:
On a consolidated basis, net revenues for the period totaled 25.69 trillion yen, an increase of 16.4 percent compared to the previous fiscal year. Operating income increased from 1.32 trillion yen to 2.29 trillion yen, an increase of 971.2 billion yen, while income before income taxes was 2.44 trillion yen. Net income increased from 962.1 billion yen to 1.82 trillion yen.
Unlike most of its global rivals, Toyota is struggling in Asia, where it needs long-term success to maintain growth. China has become the largest car market in the world. Toyota’s current strength is primarily in Japan and the United States:
In Japan, vehicle sales totaled 2,365,410 units, an increase of 86,614 units. Operating income from Japanese operations increased by 933.8 billion yen to 1.51 trillion yen.
In North America, vehicle sales totaled 2,529,398 units, an increase of 60,594 units. Operating income increased by 104.1 billion yen to 326.0 billion yen, including a loss of 15.5 billion yen due to valuation gains/losses from interest rate swaps. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 152.7 billion yen to 341.5 billion yen.
In Europe, vehicle sales totaled 844,003 units, an increase of 44,918 units, while operating income increased by 31.7 billion yen to 58.2 billion yen.
In Asia, vehicle sales totaled 1,608,355 units, a decrease of 75,223 units, while operating income increased by 19.6 billion yen to 395.7 billion yen.
Part of Toyota’s problem in China is a long-running dispute between Japan and the People’s Republic over uninhabited islands in the East China Sea. The fight has caused a backlash that has hurt sales of Japanese cars on the mainland.
If the dispute with China is resolved and Toyota’s sales get back on track there, its odds of holding its first place against GM and VW improve sharply.
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