At the end of December, 2013 Toyota had a cash stockpile of 1.8 trillion yen ($17.5B US). As of March 31, at the end of its current financial year, company coffers are expected to swallow another 1.9 trillion yen ($18.4B US) in net profit - said to be a record sum for the Japanese automaker. In a gesture signaling a turnaround from the horrors of the global recession, Bloomberg reports that Toyota will buy back 60 million shares of its stock, as much as 1.89 percent of the company, for something like 360 billion yen ($3.5B US). It's the first buyback since 2009 and the largest buyback since 2003, when it spent roughly 390 billion yen ($3.8B US) repurchasing shares.

Company president Akio Toyoda founded the Toyota Mobility Foundation (TMF), a non-profit that will support international groups working on transportation issues in emerging markets. Half of the stock that Toyota buys, 30 million shares, will be sold to the foundation via the Japanese Trustee Services Bank for one yen per share, the dividend providing the foundation's initial funding. The other 30 million shares will be canceled, a company spokesman telling Reuters that the company wants to reward shareholders.

Industry analysts have been asking Toyota to either return money to shareholders or invest in new factories, but Toyota has ruled out the latter. After getting burned with excess capacity when the financial crisis came, the company is focused on extracting efficiencies from the plants it already has. Toyota has said it plans to complete the buyback by June of this year.


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    • 1 Second Ago
  • 5 Comments
      Famsert
      • 9 Months Ago
      Great news for investors in Toyota :)
      Hajime1990 #follow
      • 9 Months Ago
      and meanwhile threaten the japanese suppliers to deduct the cost by 50 percent ( yes you read that right ). well done, akio. another easy money for you.
      i.own.your.ass
      • 9 Months Ago
      but...but... what about poor GM? oh right... they got free money from american tax payers.... lmao......joke of the year...lol...
      ctsmith1066
      • 9 Months Ago
      Ugh this is such a terrible idea. Reinvest in RnD before you do a buy-back.
        PTC DAWG
        • 9 Months Ago
        @ctsmith1066
        Do you understand the benefits to their current stockholders this provides? Also the Charity angle never hurts... Obviously Toyota knows what they are doing. All may not like their vehicles, but obviously many do.