TMC Announces First Half Fiscal Year 2013 Financial Results
(All consolidated financial information has been prepared in accordance with
accounting principles generally accepted in the United States of America)
Toyota City, Japan — Toyota Motor Corporation (TMC) announces its financial results today for the six months ended September 30, 2012.
On a consolidated basis, net revenues for the first half of the fiscal year totaled 10.9 trillion yen, an increase of 36.1 percent compared to the same period last fiscal year. Operating income increased from a loss of 32.6 billion yen to 693.7 billion yen, an increase of 726.3 billion yen, while income before income taxes* was 794.5 billion yen. Net income** increased from 81.5 billion yen to 548.2 billion yen.
Major factors contributing to the operating income increase include the positive effects from marketing activities of 580.0 billion yen and cost reduction efforts of 230.0 billion yen. Negative effects of currency fluctuations decreased operating income by 60.0 billion yen.
Consolidated vehicle sales for the first half totaled 4.516 million units, an increase of 1.490 million units compared to the same period last fiscal year.
Commenting on the first half results, TMC Executive Vice President Satoshi Ozawa said: "For the first six months of this financial year, we have seen a significant increase in production in all regions compared to the same period last year when we suffered parts-supply shortages due to the Great East Japan Earthquake. Our business results on a consolidated basis also show increased profits over the same period last year. Although the strong yen continued to affect us, government measures in various countries and regions to spur demand increased vehicle sales and our companywide cost-improvement efforts continued to bear fruit."
In Japan, vehicle sales totaled 1.192 million units, an increase of 395 thousand units compared to the same period last fiscal year. Operating income from Japanese operations increased by 526.7 billion yen to 250.8 billion yen.
In North America, vehicle sales totaled 1.261 million units, an increase of 572 thousand units compared to the same period last fiscal year. Operating income increased by 121.0 billion yen to 182.6 billion yen, including 28.0 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 108.7 billion yen to 154.6 billion yen.
In Europe, vehicle sales totaled 412 thousand units, an increase of 51 thousand units compared to the same period last fiscal year, while operating income increased by 13.9 billion yen to 12.0 billion yen.
In Asia, vehicle sales totaled 840 thousand units, an increase of 225 thousand units compared to the same period last fiscal year, while operating income increased by 63.9 billion yen to 194.5 billion yen.
In Central and South America, Oceania and Africa, vehicle sales totaled 811 thousand units, an increase of 247 thousand units compared to the same period last fiscal year, while operating income increased by 0.6 billion yen to 58.7 billion yen.
In the financial services segment, operating income increased by 3.4 billion yen to 174.5 billion yen compared to the same period last fiscal year, including 26.6 billion yen of valuation gains/losses on interest rate swaps. Excluding valuation gains/losses, operating income decreased by 15.5 billion yen to 147.8 billion yen. This was mainly due to reduced reversal of provisions for loan and residual losses in comparison to the same period last year.
TMC today revises its consolidated vehicle sales forecast for the full fiscal year ending March 31, 2013 from 8.800 million units to 8.750 million units, a decrease of 50 thousand units from TMC's forecast announced in August 2012, due to uncertainties in the Chinese and European market environments.
TMC also revises its consolidated financial forecasts for fiscal year 2013 to consolidated net revenue of 21.3 trillion yen, operating income of 1.05 trillion yen, income before income taxes of 1.18 trillion yen and net income of 780.0 billion yen, with the revision of an exchange rate of 79 yen to the U.S. dollar and 100 yen to the euro.
Commenting on the forecasts for FY2013, Ozawa said: "Although currency fluctuations have continued to affect our profits and the effect of current Japan-China relations on our sales is still unclear, we have revised the forecast we announced at the end of the first quarter to reflect the progress we have been making in our profit improvement activities. We intend to continue strengthening such activities and aim to create a profit structure able to withstand changes in the business environment."
TMC also announces an interim cash dividend of 30 yen per share, in consideration of such factors as operating results and investment plans.
*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) the impact of natural calamities including the negative effect on Toyota's vehicle production and sales; (ii) 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; (iii) 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 Canadian dollar and the British pound, and interest rates fluctuations; (iv) changes in funding environment in financial markets and increased competition in the financial services industry; (v) Toyota's ability to market and distribute effectively; (vi) Toyota's ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management; (vii) 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; (viii) political and economic instability in the markets in which Toyota operates; (ix) Toyota's ability to timely develop and achieve market acceptance of new products that meet customer demand; (x) any damage to Toyota's brand image; (xi) Toyota's reliance on various suppliers for the provision of supplies; (xii) increases in prices of raw materials; (xiii) Toyota's reliance on various digital and information technologies; and (xiv) 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.
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.
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