The Profits have Spoken: Toyota Sets High Standards
On May 11, 2010, following a year marred by recalls and government inquiries, Toyota Motor Corporation (TMC) announced their financial results for the fiscal year that ended March 31, 2010 citing net revenues that totaled 18.95 trillion yen, about $210 billion. Even though this may seem quite a hefty sum, the amount represents a decrease of 7.7 percent compared to the last fiscal year. Used Toyota Rav4 dealer noted that TMC has accomplished year-on year improvement in all regions for the fiscal year, with regard to operating income.
TMC was surprisingly profitable in North America, despite the recalls they underwent this year. Toyota vehicle sales totaled 2.1 million units, a decrease of 114 thousand units. Despite the decrease in sales there were still over 7 million people around the world who purchased new Toyotas (and who TMC President Akio Toyoda was sure to thank in his speech). With the Camry and Sequoia having been recalled, Toyota Rav4 Schaumburg dealers noted that more Toyota customers showed interest in vehicles with a legacy, such as the Rav4. According to the Toyota press room, “TMC estimates that consolidated vehicle sales for the fiscal year ending March 31, 2011 will be 7.29 million units, an increase of 53 thousand units from fiscal year 2010, due to increased sales volume in regions outside of Japan.” TMC’s plan to increase sales outside of Japan has already been enacted in their US plants where they have stepped up production.
The Japanses motor giant won’t be depending solely on sales of its old successes, such as the Toyota Rav4 Schaumburg dealerships have been selling steadily since their launch. Toyota declared their intention to maintain their innovative spirit and stay at the forefront of the green movement at the American International Auto Show in Detroit where they unveiled the FT-CH concept car along with their plan to launch eight all-new hybrid models or all-new hybrid versions of existing gas engine models over the next few years. Not the move of a company content to subsist on used Toyota Rav4 sales.
Operating income increased by 475.6 billion yen to 85.4 billion yen including 31.3 billion yen of valuation profits from interest rate swaps. Operating income excluding the impact of valuation profit on interest rate swaps increased by 417.1 billion yen, to 54.1 billion yen, mainly due to improved market conditions and financial services.
Toyota Motor Corporation also announced a cash dividend for the full fiscal year of 45 yen per share, to be proposed at the general shareholders’ meeting this June.
