Toyota isn't just the world's largest automaker – so far its the biggest winner for quarterly profits. With an enormous $5.5 billion take during Q2, Toyota took advantage of the weak Japanese yen and strong US demand to record a 94-percent improvement in profit over the same period from last year. So far, Toyota brought in larger profits than Ford and General Motors combined.

Toyota is showing no signs of slowing down either, as it has bumped up its forecast for full-year global production, going from 9.94 million to 10.12 million vehicles, on the back of a 13-percent drop in the buying power of the Japanese yen versus the US dollar. That strong exchange rate is largely responsible for Toyota's big jump in profits, although it also managed to shift 1.3 million vehicles in the US market this year. Strong Camry sales have also helped. But while Toyota is raking in the cash, it actually saw a small drop in market share, down 0.1 percent to 14.3 percent of the US market.

As is the case with most automakers, Toyota seems flummoxed by Europe, where it recorded less than one percent of its revenue. Still, as Automotive News points out, Toyota only maintains a 4.5-percent market share in Europe and is far less dependent on the continent than other manufacturers. Toyota also struggled at home, much like Honda. With 525,777 units sold, JDM sales were down almost 51,000 units, although Toyota still saw its operating profit jump from $3.5 billion to $4.6 billion.

Scroll down for Toyota's official press release.
Show full PR text

Toyota Motor Corporation Announces First Quarter 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, August 2, 2013-Toyota Motor Corporation (TMC) today announces financial results for the first quarter ended June 30, 2013.

On a consolidated basis, net revenues for the first quarter totaled 6.2553 trillion yen, an increase of 13.7 percent compared to the same period last fiscal year. Operating income increased from 353.1 billion yen to 663.3 billion yen, while income before income taxes1 was 724.1 billion yen. Net income2 increased from 290.3 billion yen to 562.1 billion yen.

Operating income increased by 310.2 billion yen. Major factors contributing to the increase include currency fluctuations of 260.0 billion yen, cost reduction efforts of 70.0 billion yen, and marketing activities of 30.0 billion yen.

Consolidated vehicle sales for the first quarter totaled 2,231,859 units, a decrease of 36,704 units compared to the same period last fiscal year.

Commenting on the results, TMC Managing Officer Takuo Sasaki said: "Operating income increased due to the impact of foreign exchange rates and our global efforts for profit improvement, through cost reduction activities such as companywide value analysis, and through marketing activities such as enhancement of the model mix and pricing."

In Japan, vehicle sales totaled 525,777 units, a decrease of 50,893 units compared to the same period last fiscal year. The operating income from Japanese operations increased by 348.9 billion yen to 456.0 billion yen.

In North America, vehicle sales totaled 688,656 units, an increase of 26,309 units compared to the same period last fiscal year. Operating income decreased by 34.9 billion yen to 82.6 billion yen, including a loss of 20.9 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 7.9 billion yen to 103.5 billion yen.

In Europe, vehicle sales totaled 192,511 units, a decrease of 16,336 units, while operating income increased by 1.8 billion yen to 5.2 billion yen.

In Asia, vehicle sales totaled 394,866 units, a decrease of 23,890 units, while operating income increased by 2.5 billion yen to 104.1 billion yen.

In Central and South America, Oceania and Africa, vehicle sales totaled 430,049 units, an increase of 28,106 units, while operating income increased by 15.3 billion yen to 42.5 billion yen.

In the financial services segment, operating income decreased by 35.4 billion yen to 51.2 billion yen compared to the same period last fiscal year, including a loss of 26.9 billion yen of valuation gains/losses on interest rate swaps. Excluding valuation gains/losses, operating income increased by 8.0 billion yen to 78.2 billion yen.

TMC estimates that consolidated vehicles sales for the fiscal year ending March 31, 2014 will be 9.1 million units, which are same as TMC's forecasts announced in May 2013.

In addition, TMC forecasts consolidated net revenue of 24 trillion yen, operating income of 1.94 trillion yen and net income of 1.48 trillion yen for the fiscal year ending March 31, 2014, based on an exchange rate of 92 yen to the U.S. dollar and 122 yen to the euro.

Commenting on the forecasts for FY2014, Sasaki said: "While paying close attention to the conditions in each market and responding flexibly, we plan to continue our efforts to improve the company's profit structure."


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
  • 50 Comments
      Renaurd
      • 1 Year Ago
      To hell with Toyota and Japan.......and while I'm at it, to hell with China.
      • 1 Year Ago
      [blocked]
        James
        • 1 Year Ago
        The garbage out of Detroit is so bad ... Toyota could kick Detroit's behind by selling the same vehicles for years. But, Toyota is on the move. Their hybrid is the best in the world. Detroit is unable to match. Detroit executives are worried ... that is why they are crying about the Yen. Just last month, Toyota outsold Ford while Honda outsold Chrysler. In a few years, Toyota will outsell GM in the US, while Honda will outsell Ford.
          • 1 Year Ago
          @James
          [blocked]
          • 1 Year Ago
          @James
          [blocked]
        riserburn99andre
        • 1 Year Ago
        Yeah like Ford reskins their Ford vehicles as Lincolns? I guess when you can make money you should have posers and copycats
        Mr. Bader®
        • 1 Year Ago
        So true
      Walt
      • 1 Year Ago
      Toyota - the real Government Motors.
        • 1 Year Ago
        @Walt
        [blocked]
      • 1 Year Ago
      Bottom line is that Toyota produces cars that the US consumer wants to BUY, not just drive at Hertz and Avis. Yeah, sure they are not the most interesting but at the end of the day Toyota never was a company about passion, driving experience etc. They left that to the Porsche, BMW and Audi's of the world. The weak yen only highlighted what was already going to happen. That they returned to selling the most cars and turning the most profit. Before all of you crow about JP government intervention, look in the rear view mirror, bailouts (x2), massive anti-capitalism import taxes, just to name a few from prior US governments. Icing on the cake would be for the judge to throw out the ridiculous UIA cases, but what the heck, if not pay the $Bs and move on. Frankly it's chump change and making more saleable vehicles will continue to be the focus. Automakers worldwide including VW will soon realize the light they see at the end of the recession tunnel is the Tokyo express coming the other way :)
        • 1 Year Ago
        [blocked]
      Mr. Bader®
      • 1 Year Ago
      Invest some of this profits to build better looking cars TURdyota
      owen brown
      • 1 Year Ago
      Magnificent job Toyota, keep making the best of the best and no doubt you will remain my # 1 automaker..The more they hate the more you keep shining..woooot woooot!! great job Toyota.
      • 1 Year Ago
      [blocked]
      Hybridnetics
      • 1 Year Ago
      Thanks for the currency war Japan
        ctsmith1066
        • 1 Year Ago
        @Hybridnetics
        No currency war here. Japan's currency was already unusually strong as a result of its economy being stagnant for more than a decade. They're just shaking the cobwebs loose.
      the.fog
      • 1 Year Ago
      But, DON'T CHA' KNOW, gee golly Pure capitalism will FIX IT ALL. Our companies can certainly swim in a global climate that inludes competitors with virtually UNLIMITED resources.. Oh, and, BTW, don't even think about shipping cars to their country. Turn about is NOT fair play in this business... We must *gift* them our market.
      John P
      • 1 Year Ago
      And don't forget that The masters at Toyoda began their quest for world domination by paying their employees around 1% interest on their company savings plan and then they took the money and invested in US Gov't Treasuries in the 80's paying 15% interest and built their overseas factories with the interest spread. Toyoda=Government Motors.
      Marshall Stewart
      • 1 Year Ago
      Has anyone else heard or realized that over 80% of that profit increase were due to the weakening yes? They have cut costs appropriately, and will probably continue to see improving financials due to that, but don't get blown away by this number
      • 1 Year Ago
      [blocked]
    • Load More Comments