Releasing its earnings for the quarter ending 31 December 2008, Toyota Motor Corporation (TMC) forecast a total operating loss of ¥450 billion (US$4.9 billion), with a net loss of ¥350 billion (US$3.8 billion) for the fiscal year (FY 2009) ending 31 March 2009.
For FY 2008 (ended 31 March 2008), Toyota had reported operating income of ¥2,238.6 billion (US$24.3 billion), with net income of ¥1,644 billion (US$17.9 billion).
TMC estimates that consolidated vehicle sales for FY 2009 will be 7.32 million units, a further decrease of 220 thousand units from TMC’s revised forecast in December 2008. Vehicle sales in FY 2008 were 8,913 units; in May 2008, Toyota was forecasting FY 2009 sales of 9,060 units.
For the third quarter, net revenues dropped 28.4% year-on-year to ¥4.8 trillion yen. Operating income decreased from ¥601.5 billion to a loss of ¥360.6 billion (a ¥962 billion, US$10.5 billion swing), while income before income taxes, minority interest and equity in earnings of affiliated companies was a loss of ¥282.1 billion. Net income decreased from ¥458.6 billion to a loss of ¥164.7 billion.
Commenting on the Q3 results, TMC Executive Vice President Mitsuo Kinoshita said, “Both revenues and profits declined severely during this period. The negative results are largely due to lower vehicle sales volume under difficult market conditions mainly in the US and Europe, and the rapid appreciation of the yen against the US dollar and the euro.”
Due to the severe automotive market situation, we have revised our forecast for FY2009...To accelerate our activities further with the aim of reforming our earning structure as swiftly as possible, we will focus more on how we can maximize revenues, by developing a new product line-up that responds to the customers’ requirements in each region.
For the mid-term, we plan to enhance the development of hybrid and compact vehicles which we believe are the key to our future growth. For example, our new generation Prius will launch in May, followed by Lexus’ first exclusive hybrid vehicle, the HS250h this summer. We are also thoroughly reviewing our entire business to reduce costs across the board. We are aiming to implement a more effective cost structure in the areas of research & development, production and sales operations.
Specifically, we plan to expand the scope of our emergency value analysis to achieve further cost reduction and reduce fixed costs by 10%.—Mitsuo Kinoshita