• May 10, 2006

Toyota's quarterly profit jumped 39 percent over year-ago figures, with the automaker earning $3.6 billion on sales of $51.6 billion in the first quarter of 2006. Those aren't exactly Exxon Mobil numbers, but they're not chump change, either. Sales were up 18 percent over the same period, and the automaker sold more cars everywhere except in its stagnating home market of Japan.

Some analysts think that a weaker dollar may eventually erode these profits, as current exchange rates are said to have contributed $2.7 billion to Toyota's bottom line last year (nearly 25 percent of the automaker's net profit in 2005). Indeed, with that in mind, Toyota sees its profit dipping by 4.5 percent in the next year, despite a projected sales increase of 6 percent.

[Source: AP via Yahoo!]

 



I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 12 Comments
      • 8 Years Ago
      Come on out here to Cali, my friend. I know ALL about it. Nope, I do not live in one of those $800K homes, nor am I able to afford children. So, regarding your lecture on economics, I'm living it..each and every day. Been right-sized, downsized, etc too, so I know all about that as well.

      Don't worry about the next generation...you don't have to breed anymore. The "One Day Without Immigrants" should have shown you where the next generation is coming from. Actually they are already here, and growing daily.

      And no, that's not to sound racist in any sense of the word, it's just the truth. Here (and you can Google till your heart bleeds, as there's a Ton of information out there):

      http://www.cnn.com/2006/US/05/10/hispanics/index.html

      Here's something you and every American should know (by now): EVERYTHING is for sale, including YOU.

      Se Habla? It doesn't take more than that to turn a screw or a wrench!!

      Lower wages, higher costs of living (fuel, homes, school, cars...oh wait, I mean't "Chevys", and medical care)...and let's not forget Uncle Sam! So...when you are competing against Mexicans living in Iowa, yes...I would agree with you, we have created one HELL of a mess. But then again, that's what the powers that be want! Of course they do...could it be any other way?
      • 8 Years Ago
      Hey Rastus,

      I don't know what country you are from but in America we are seeing a drop in income for the past 5 years or so. In the past 20 years or so we are seeing more and more couples having to work 2 jobs or more to pay the bills. This trend is directly related to the imbalance of trade with the U.S. and the loss of GOOD PAYING jobs. You are right about the good ole days being gone. We have created one hell of a future for the next generation to try and survive. Just look on the bright side, thanks to people like you they will have alot of dependable used Asian vehicles to choose from when they take their kids to and from day-care while they are at their full-time jobs and then go to work at their night jobs. You will feel good knowing that their Toyoduhh will get them home just in time to kiss their children goodnight.

      I don't know what part of the world you are from but most Americans try to give back more than they take.
      • 8 Years Ago
      To DarkKnight67:

      Toyota may have incentives, but their lots are not overstocked and they don't overproduce the way the Big Two + one do.

      To the overall profits:

      Yes the exchange rate will hurt Toyota over the next 4 quarters. Ironically, the U.S. dollar should be stronger than any other currency with the Fed about to raise the short-term interbank rate to 5%. The currency traders all said the reason the dollar was so devalued over the last 5 years was due to the low Fed Rate-so where is the rebound? (I know-huge debt/defecit-but most European economies are in much worse shape than the U.S. economy).

      I find it interesting that Toyota's net profit margin is just shy of 7%. That means for every dollar of income, 93 cents goes to making the product, turning on the lights, paying employees, benefits, equipment, raw materials, paying off debt etc.; and 7 cents sits in the proverbial coffers or to shareholders as dividends.

      Pretty mind blowing that it is only a 7% profit margin-but still-with economies of scale, it makes sense...
      • 8 Years Ago
      "as current exchange rates are said to have contributed $2.7 billion to Toyota's bottom line last year (nearly 25 percent of the automaker's net profit in 2005)."

      Tell you what, for all those globalist who want me to believe there is no difference between a foreign or domestic company (their all just companies), I'll take the nearly $3 billion of money made here simply because we do in fact still have borders. We'll just call it money earned for being right about there still being American and foreign companies and we'll call it a day. Dumbasses.

      • 8 Years Ago
      Toyota's profits are obscene.
      • 8 Years Ago
      At least they do not have to deal with the UAW--that must be why they're making such profits.
      • 8 Years Ago
      All those incentives are paying off!!
      • 8 Years Ago
      #5, you owe me a new keyboard. I just spat orange juice all over mine.
      • 8 Years Ago
      The thing I find most interesting about their jump in profits is the fact that they are becoming a greater discounter than the Big Three. Each month, I notice how they have a new sale and how their SUV's and trucks just keep getting newer, larger finance and rebate offers in hopes of getting the piles off the lots. Granted, GM, Ford and Chrysler aren't setting the world on fire with certain models, but at least they are beginning to recognize that with deep discounts comes the stigma of cheap product.
      • 8 Years Ago
      So it's OK for you to call people dumbasses but it's not OK for other people to call you what you really are - an idiot.
      • 8 Years Ago
      OK Rastus,

      I see what you are. It's not just American cars you hate, It's everything. I won't waste any more of my time on you.
      Paul
      • 8 Years Ago
      toyota makes a large profit because they make smarter cars that people will pay a premium for. as opposed to the stupid american companies that make junk and try to compensate by giving big discounts. this is because the us companies do not have the talent that can compete with the asians. smart is smart and dumb is dumb.