Toyota Reports Record Fiscal 1Q 2014 Earnings

The big T earns transport ships filled with $s.

Wayne Gerdes - CleanMPG - Aug 5, 2014



The 2014 Avalon Hybrid Logo – Fitting as the company’s flagship hybrid represents the companies interests moving forward.



This morning Toyota reported its 1Q financial results for the period ending June 30, 2014. Operating profit came in at $6.73 billion USD, up 4.3 percent from the $6.45 billion USD it earned in the fiscal 1Q of 2013. This was the company’s best quarter in history.



Global sales for the quarter totaled 2,241,285 vehicles, an increase of 9,426 or .4 percent compared to the same period in 2013.



Net revenues for the period totaled $62.1 billion USD, an increase of 2.2 percent compared to the same period in 2013. Net income rose from $5.46 billion USD to $5.71 billion USD while operating income increased by $280 million USD.



TMC Managing Officer Takuo Sasaki:

Quote:

“In addition to cost reduction efforts (+$390 million USD) and favorable foreign exchange rates (+$290 million USD), valuation gains and losses mainly from interest-rate swaps were positive factors. However, changes in model mix and increases in expenses impacted us negatively. ”

Regional Results



Japan - In its home market, Toyota stated its vehicle sales totaled 505,827, a decrease of 3.8 percent from the 525,777 vehicles sold in the same period a year ago. Similarly, Operating income decreased by $880 million USD or 19.1 percent to $3.56 billion USD.



North America



North America is where most of the earnings arose with vehicle sales up 3.1 percent to 710,409. Operating income from the region excluding the impact of valuation gains/losses from interest rate swaps, increased by $450 million USD, up 44.5 percent to $1.46 billion USD.



Europe



In Europe, vehicle sales were up 7.7 percent to 207,481 vehicles, an increase of 14,970 from the 192,511 sold in the fiscal 1Q of 2013. Operating income increased by $54.4 million USD or 207 percent to $105 million USD.



Asia



Across Asia, vehicle sales totaled 385,376, a decrease of 2.4 percent from the 394,866 sold during the same period a year ago. Despite the sales decline due mainly to the political Japan WW-II backlash, Operating income of $1.07 billion USD was up 5.9 percent from the $1.01 billion USD earned during the same period a year ago.



Everywhere Else



In Central and South America, Oceania, Africa and the Middle East, vehicle sales totaled 432,192, an increase of 0.4 percent, while operating income decreased by $81.7 million USD or 19.2 percent to $331 million USD from the $412.7 million earned in the year ago period.



Notice not a single loss in any region in the world? #2 VW and #3 GM continue to find regional profitability around the globe elusive.



Excluding valuation gains/losses, operating income increased by $369 million USD to $797 million USD.



All of the above results were converted at today’s exchange rate of 1 Japanese Yen = 0.0097 US Dollars.



Looking Forward



Through the end of the year, Toyota - includes its subsidiaries – expects total global sales of 9.1 million vehicles, the same forecast it published in May.



For the fiscal year through March of 2015, Toyota continues to estimate its full-year operating profit forecast of $22.4 billion USD. Like its fiscal 1Q earnings result, this full year result would be a record high for the company barring any unforeseen regional financial or otherwise calamities.

Toyota Reports Record Fiscal 1Q 2014 Earnings