Toyota Motor Corp. (NYSE: TM) has announced its full-year earnings for the period that ended on March 30. Along with stellar earnings, the Japanese car manufacturer reported it sold 9,116,033 vehicles. This means Toyota has a reasonable chance to maintain its position as the world’s top car company, a position that both General Motors Co. (NYSE: GM) and Volkswagen have challenged.
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.
ALSO READ: The Best-Selling Products of All Time
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
