Toyota reports Q2 2007 earnings... yup, they're up
Toyota reported its earnings today for the second quarter that ended on June 30th, and not surprisingly, profits are up. Bolstered partly by a weak Yen, Toyota's operating profits rose 31.8% to $5.48 billion USD. Revenue was up 15.7% to $52.92 billion and sales were up 7.1% to 2,365,000 (Side Note: GM sold over 2.4 million globally in Q2). In a coincidental twist of fate, Toyota sales the world over were all up except in its home market of Japan, a situation that mirrors closely what is happening to General Motors, Ford, and the Chrysler Group in the U.S. The difference, however, is that the U.S. is potentially the most profitable market in the world, and a loss in the States equates to a lot more potential sales missed. Toyota also commented on the Tundra's performance in the market place, saying, "from the beginning, we were ready to offer incentives," and "We had some concerns about the Tundra, but the plans have been achieved." Incentives are certainly a permanent part of the game now for automakers offering full-size pickups, and Toyota is not immune. Nevertheless, as we reported yesterday, sales are doing well, with the Tundra possibly overtaking the GMC Sierra 1500 in units sold year-to-date at the end of Q2. According to Mike Levine from pickuptruck.com, while hitting the 200,000 unit/year mark may be in question, there's still a chance the Tundra could overtake the half-ton Dodge Ram in sales by the end of the year.
[Source: Automotive News, sub. req'd]
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Reader Comments (Page 1 of 1)
johdaxx 12:52PM (8/03/2007)
Good. Now get to building us the new AE86!
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John R 1:01PM (8/03/2007)
Hear, Hear! Supra replacement to also! Preferably a variant without the hybrid powertrain. Blademaster G would be nice, too...except the name, that can stay JDM.
Todd 4:56PM (8/03/2007)
And a TRUE Turbo MR2 replacement! (T-tops ok, convertible NO!)
Rambo 3:51PM (8/03/2007)
I WONDER IF TOYOTA PLANS ON SHARING SOME OF THOSE PROFITS WITH ITS NON-UNION EMPLOYEES!
Petey 1:07PM (8/03/2007)
Here's the crasy part: GM and Toyota basically sold the same number of cars golbally (+/- a few 10k)... but, look at the FREAKIN HUGE difference in profitability. ... INSANE
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Aaron 1:18PM (8/03/2007)
very interesting how 15% of the operating profit according to that very article comes from the Yen... lol..
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Nick 1:32PM (8/03/2007)
Must be nice to have a whole government watching your back.
T 10:21PM (8/03/2007)
Don't try to play it like the other automakers aren't benefitting in the same way with their operations in far-east and southeast Asia.
Bonita 1:32PM (8/03/2007)
Great job, Toyota. This is what happens when you build quality automobiles. Keep 'moving forward.'
Hello, GM: Are you listening?
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Rob 2:01PM (8/03/2007)
ingorance is bliss
Tony 6:51PM (8/03/2007)
They will share with their non union workers, as their workers pensions will always be safe. Toyota has no interest in taking over money losing car companies.
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zetha 7:06PM (8/03/2007)
why would a company share profits with non executive employees? they are already been paid
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bathtub gin 11:29AM (8/04/2007)
Many companies offer profit sharing, bonuses, and other incentives to keep good people, not because some union contract forces them. I have been in banking the last 10 years, and things like ESOP, profit sharing, and performance bonuses were put in place place company-wide to keep the good employees from leaving. Not a union in sight.
I don't know what sort of benefits Toyota offers, but I am sure there is something there besides an employee discount and a free turkey at Thanksgiving.
PS - any publicly-held company shares its profits with non-executive employees, or anyone else who owns stock in it. It's called a dividend.
Rob 8:17PM (8/04/2007)
What Toyota does not do is pay their executives outrageous salaries-that's very typical of Japanese management. The extra money is re-invested into the company.
In the USA, the CEO/CFO/COO gets HUGE pay, by comparison.
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Mikeeeeeeee 9:31AM (8/05/2007)
It's amazing. If GM was making this kind of $$$$ there would be headlines in every paper saying they are making way too much money, they need to give back more to their employees and they need to LOWER THEIR PROFITS. Toyota, on the other hand is praised. But, it's like anything else. Kick them while they are down. OH, by the way the Silverado 5.5 gets better EPA than the Titan 5.6 and the Tundra 5.7. A FACT that is ignored by most.
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Mikeeeeeeee 9:45AM (8/05/2007)
Hey Tony, You should check out some facts first:
April 27 - Tennessee leads the nation in the percentage of workers classified as temporary, according to a recent report by Staffing Industry Analysts. Tennessee has more than 2.8 percent temporary workers in its workforce, almost one-and-a-half times the national average, says the report, summarized in Contingent Workforce Strategies magazine.
Tennessee also boasts the fastest-growing temporary work population in the nation, according to the report. Tennessee has a lot of "low-skilled to semi-skilled jobs like distribution and manufacturing," says Kelly McCreight, President of the Tennessee Staffing Association, quoted in the CWS story. Manufacturers include Toyota, Nissan, Saturn and Dell. While Saturn is a unionized employer with few temporary workers, Toyota's temporary workforce has been criticized, especially for the lack of access to health care for the company's temporary employees (Jonathan Weisman, Washington Post, October 11, 2004).
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