Toyota Earnings Up More than ThreefoldGENERAL MOTORS (GM): Free Stock Analysis ReportHONDA MOTOR (HMC): Free Stock Analysis ReportNISSAN ADR (NSANY): Get Free ReportTOYOTA MOTOR CP (TM): Free Stock Analysis
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Toyota Motor Corp. ( TM ) posted earnings of
¥962.16 billion ($10.22 billion) or ¥303.78 ($3.23) per share in
the fiscal year ended Mar 31, 2013, reflecting more than threefold
increase from ¥283.56 billion or ¥90.20 per share in the prior
fiscal year. However, earnings missed the Zacks Consensus Estimate
of $6.26 per share for the year.
Consolidated revenues in the year escalated 18.7% to ¥22.06
trillion ($234.33 billion) on a 20.7% rise in unit sales to 8.87
million units. Unit sales rose 10.0% in Japan, 31.9% in Europe,
0.1% in Europe, 26.9% in Asia and 27.8% in Other reporting
However, revenues were lower than the Zacks Consensus Estimate of
$278.12 billion. Operating income increased nearly fourfold to
¥1.32 trillion ($14.03 billion) from ¥355.63 billion in fiscal
The improvement in revenues and profits was attributable to
positive impacts from marketing activities of ¥650.0 billion ($6.90
billion), cost reduction activities of ¥450.0 billion ($4.78
billion) and currency fluctuations of ¥150.0 billion ($1.59
billion), partially offset by negative impact from related expenses
of ¥300.0 billion ($3.19 billion).
In the Automotive segment, revenues went up 20.2% to ¥20.42
trillion ($216.43 billion) in the year while operating income
increased significantly to ¥944.70 billion ($10.13 billion) from
¥21.68 billion a year ago. The increase in operating income was
mainly attributable to increases in production volume and vehicle
unit sales as well as positive impact of cost reduction
In the Financial Services segment, revenues scaled up 6.4% to
¥1.17 trillion ($12.43 billion) while operating income rose 3.1% to
¥315.82 billion ($3.35 billion). The improvement in operating
income was caused by higher financing volume.
In All Other businesses, revenues grew 1.7% to ¥1.07 trillion
($11.33 billion) while operating income grew 27.5% to ¥53.62
billion ($569.41 million).
Toyota had cash and cash equivalents of ¥1.72 trillion ($18.25
billion) as of Mar 31, 2013, an increase from ¥1.68 trillion as of
Mar 31, 2012. Total debt increased to ¥14.13 trillion ($150.08
billion) as of Mar 31, 2013, reflecting a debt-to-capitalization
ratio of 53.8%, compared with ¥12.00 trillion or 53.2% as of Mar
In fiscal 2013, Toyota's operating net cash flow improved 68.8% to
¥2.45 trillion ($26.03 billion) from ¥1.45 trillion in the prior
fiscal year, primarily driven by higher profits and significant
rise in deferred income taxes. Meanwhile, capital expenditures
(net) increased 18.7% to ¥815.37 billion ($8.66 billion) from
¥686.90 billion a year ago.
Fiscal 2014 Guidance
For fiscal 2014 ending Mar 31, 2014, Toyota projected consolidated
vehicles sales to increase 229,000 units to 9.1 million units due
to increase in vehicle sales outside Japan. Consequently, the
company expects consolidated revenues to increase 6.5% to ¥23.5
trillion, operating income to rise 36.3% to ¥1.80 trillion yen and
net earnings to go up 42.4% to ¥1.37 trillion for the fiscal year
compared with fiscal 2013.
Toyota manufactures and sells passenger cars, minivans, and
commercial vehicles and related parts primarily in Japan, North
America, Europe, and Asia. Last year, the automaker recaptured the
sales crown from General Motors Company ( GM ) by selling 9.75
million vehicles globally in 2012, which exceeded GM's sales of
9.29 million vehicles.
Currently, it retains a Zacks Rank #3 (Hold). Other prominent
global automakers in Japan include Honda Motor Co.
( HMC ) and
Nissan Motor Co. ( NSANY ).
(Exchange rate (Mar 31, 2013): $1 = ¥94.16)