• May 8th 2009 at 12:32PM
  • 70
Last quarter's financial news has been brutal for all that have reported, but the biggest blow has just come from one of the world's most successful automotive powerhouses. Toyota has posted a last-quarter loss of $7.7 billion; the worst loss of the company's 71-year history and worse than even GM's just-reported loss of $6 billion. Toyota now expects to lose $5.5 billion for the year ending March 2010, surpassing the $4.4 billion it lost in the just-concluded year.

The reasons for Toyota's reversal of fortune is well documented. Global sales were down 21.9% last year, with the most stark losses occurring in the U.S. and Europe. The Yen also made strong advances against the U.S. Dollar, further hurting the Japanese automaker. While sales took a big dive during the last fiscal year, Toyota expects to lose another one million unit sales globally in the next year.

Even with Toyota's tremendous struggles, analysts expect it to emerge from the automotive downturn with far less stress than its domestic competition. Years of multi-billion dollar profits have fortified Toyota's balance sheet, giving the Aishi, Japan-based automaker far firmer financial footing.

To weather the downturn, Toyota has already laid off thousands of temporary workers worldwide, and it has also offered buyouts to American workers. The company also postponed construction indefinitely on its Mississippi assembly plant. It's also continued to pare down manufacturing costs, and will likely accelerate those efforts in the year ahead.

[Source: Toyota, MSNBC | Photo by Ramin Talaie/Getty]


Toyota Announces Year-End Financial Results

Tokyo - TOYOTA MOTOR CORPORATION (TMC) today announced operating results for the fiscal year ended March 31, 2009.

On a consolidated basis, net revenues for the fiscal year ended March 31, 2009 totaled 20.53 trillion yen, a decrease of 21.9 percent compared to the last fiscal year.Operating income decreased from 2.27 trillion yen to a loss of 461 billion yen, and income before income taxes, minority interest and equity in earnings of affiliated companies was a loss of 560.4 billion yen.Net income decreased from 1.72 trillion yen to a loss of 437 billion yen.

Operating income decreased by 2.73 trillion yen.Negative factors for the decline include 1.48 trillion yen due to the effects of marketing activities and 760 billion yen mainly from the appreciation of the Japanese yen against the U.S. dollar and the euro.

Commenting on the financial results, TMC President Katsuaki Watanabe said, "Both revenues and profits declined severely during this period.The negative impact was a consequence of the significant deterioration in vehicle sales particularly in the U.S. and Europe, the rapid appreciation of the yen against the U.S. dollar and the euro and the sharp rise in raw materials."

In fiscal year 2009, Toyota's consolidated sales totaled 7.57 million units, a decrease of 1.34 million units from the last fiscal year.

In Japan, vehicle sales were 1.95 million units, a decrease of 243 thousand units compared to the last fiscal year.Operating income from Japanese operations decreased by 1.68 trillion yen to a loss of 237.5 billion yen.

In North America, vehicle sales totaled 2.21 million units, a decrease of 746 thousand units.Operating income decreased by 695.5 billion yen to a loss of 390.2 billion yen including 73.9 billion yen of valuation losses from interest rate swaps.Operating income excluding the impact of valuation losses on interest rate swaps decreased by 713 billion yen, to a loss of 316.3 billion yen, mainly due to decreases in both production and vehicle sales.

In Europe, vehicle sales were 1.06 million units, a decrease of 222 thousand units.As a result, operating income decreased by 284.8 billion yen to a loss of 143.3 billion yen.

In Asia, vehicle sales were 905 thousand units, a decrease of 51 thousand units.Operating income decreased by 80.3 billion yen, to 176.1 billion yen.

In Central and South America, Oceania, Africa and the Middle East etc., vehicle sales were 1.44 million units, a decrease of 84 thousand units.Operating income for Central and South America, Oceania and Africa decreased by 56.3 billion yen to 87.6 billion yen.

In the financial services segment, operating income decreased by 158.5 billion yen, to a loss of 72 billion yen compared to the last fiscal year, including 80.2 billion yen of valuation losses from interest rate swaps.Excluding the valuation losses, operating income decreased by 146.3 billion yen to 8.2 billion yen.Higher outstanding loan balances and improved lending margins were offset by an increase in allowance for credit and residual value losses mainly in the U.S.

TMC estimates that consolidated vehicle sales for the fiscal year ending March 31, 2010 will be 6.5 million units, which is a decrease of 1.06 million units from the fiscal year 2009, due to continuance of the current severe conditions of each market.

Based on this assumption, TMC announced its consolidated financial forecast for the fiscal year ending March 31, 2010.Based on an exchange rate of 95 yen to the U.S. dollar and 125 yen to the euro, TMC forecasts a consolidated net revenues of 16.5 trillion yen, operating loss of 850 billion yen and net loss attributable to Toyota Motor Corporation* of 550 billion yen.
* "Net loss attributable to Toyota Motor Corporation" is equivalent to "net loss" up to FY2009

TMC President Watanabe commented on the outlook: "It appears to take some more time before the financial markets in the U.S. and Europe normalize and the global economy recovers.However, in the 2010 fiscal year, we plan to accelerate our profit improvement activities including the expansion of our hybrid vehicle line-up such as the next generation Prius in May and the Lexus' HS250h in July.All totaled, we plan to launch four hybrid models in Japan and three models overseas within this fiscal year.Through the reduction of variable and fixed costs, we estimate our total profit improvement in fiscal year 2010 will be around 800 billion yen.

For the mid-term, we plan to thoroughly analyze our customers' needs in each region and develop product line-ups which will focus on hybrid and compact vehicles with more cost reduction efforts.We will also concentrate on resource-rich and developing countries with the aim of providing high-quality, affordable and attractive models from the customers' viewpoint.In addition, we will continue to accelerate commercialization of next-generation technologies in the areas of environment, energy and safety including hybrids, plug-in hybrids, next-generation batteries, bio fuels and fuel cell vehicles.We also aim to establish flexible and effective systems in the areas of development, production and sales to respond to changes in business environment."

TMC also announced a cash dividend for the full fiscal year of 100 yen per share, a decrease of 40 yen over the last fiscal year to be proposed at the general shareholders' meeting in June.

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    • 1 Second Ago
      • 6 Years Ago
      Toyota should pull out of NASCAR, completely.
        • 6 Years Ago
        Toyota should pull out of F1, completely. Thier F1 budget accounts for 1/4 of last years loss!!!
      • 6 Years Ago
      While Toyota may have reported a loss for it's last FISCAL year and not Q1 as incorrectly reported on the article, they however remain a very strong, stable and influancial global automotive manufactuer and will continue to do so.

      While i believe Toyota will most likely be one of the car companies to rebound more quickly when the market eventually improves because of their competitive fleet / range virtually right across board, they have admittedly made some mistakes in the North American market in the past few years.

      However, Toyota has traditionally learn't quickly from it's past mistakes and moved promptly to fix the issues and in this case their corporate actions will be no different.

      So while the likes of GM, Ford and Chrysler have been reporting mult-billion losses for many years - this infact is Toyota's ever reported loss so you can only begin to imagine what thier balance sheet looks like.

      As for debt, Toyota virtually doesn't have any debt as they own the shear bulk of thier global operations and any comment otherwise is quite frankly ... WRONG !!

      While the current economic slump is harsh, it has and will continue to motivate companies from all industries to streamline thier operations and considering Toyota's global operations are amoung the most efficent of all, actions taken during global recession will prove to boost the efficency of Toyota even more so especially when the slump turns around.

      Despite thier first reported loss ... Toyota is strong, they will contnue to be strong and they will further improve thier operations into the future.
      • 6 Years Ago
      finally some good news...................
      • 6 Years Ago
      I'm not surprised. GM is a bloated company with too many brands and it makes cars that nobody wants to buy.

      Oh wait....
      • 6 Years Ago
      Toyota is #1 in sales in the US...so its no suprise that they are also the #1 loser when the entire industry blows out. People think its just the "big 3" that are in trouble when its actually the whole industry...chrysler and GM just happened to be in the worst condition before the fallout so the spotlights been on them the whole time as they flail around in federal and UAW BS
        • 6 Years Ago
        I want some of what Bob Marley is smoking. Toyota != top sales in America.
        • 6 Years Ago
        Dude, Toyota lost more in Q1 than GM and Ford COMBINED. That's staggering.

        They may be in a better cash position than GM, but they're now bleeding it faster.

        Toyota's sales in China were down 17%. GM's sales are up 50% there. Toyota lost sales and market share month-over-month in April in the US. GM sales GREW 6.6% month-over-month in April. Market share did, too.

        And all while every mention of "GM" in the media has had the word "Bankruptcy" next to it since at least last December.
        • 6 Years Ago
        What you have to look at is how much did Toyota make last fiscal year (ending March '08) and how much they lost this fiscal year. That's where you'll see just how badly they did this year.

        I'm going to guess they made 10b+ last year, so they really dropped approx 15b year over year.

        They would be in much more trouble if the yen had not been so weak for the past 3-5 years.
        • 6 Years Ago
        Fellas...Prior to the economic downturn Toyota passed GM as the #1 in US sales...or was I just smoking too much a da herb? jamon!
      • 6 Years Ago
      I will try again sense autoblog has tried hard to stop my comments from going through.


      Toyota's loss is not from Q1 - infact, it is impossible

      Toyota's reporting period is somewhat different to others because thier Financial Calender Year runs from 01 April to 31 March of each year which means Toyota hasn't even reported Q1 resu;ts yet and won't until July or August.

      This reported loss is infact for the entire 2008 / 2009 reporting period which began 01 April 2008 and ended 31 March 2009.

      Please take the time and research correctly and then that way your articles will be reported correctly.
      • 6 Years Ago
      good thing you espoused your virtues in order to be the number 1 manufacturer. Looks like its working out well for you.
      • 6 Years Ago
      • 6 Years Ago
      Toyota's European offerings get uglier with every year that passes. In fact they have gone from bland to ugly, never touching interesting or characterful on the way.

      The iQ is almost interesting, but not quite.
        • 6 Years Ago
        Not really, the euro Avensis looks pretty good, look at Toyota U.S., a ton of SUV's that nobody will buy, Toyota U.S.A. lost it's japanese spirit and become an american type giant car maker.
      • 6 Years Ago
      Toyota amassed billions upon billions of dollars in reserves in the boom years. They'll be fine.
      • 6 Years Ago
      OMG! Not Big T!!!

      My how silent the Toyota fans are now...not too quick to blame the Emperor's company for lacking the planning to avoid such a loss...or blame to workers for being too inefficient...or blame to company for slashing dividends.


      • 6 Years Ago
      It doesnt surprise me Toyotas are not selling ! Its the way they treat their customers . I was in the market for a truck , when I emailed the salesman at Sun Toyota in Newport Richey Florida , that I was also looking at Chevys, he responded saying that "obviously you can't afford to buy a Toyota " ! He stated that Chevrolet was in the governments soup kitchen ! Pretty much an insult to me and other U.S. soldiers !
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