Toyota Motor Corp.
) announced that it will boost annual engine assembly capacity of
4-cylinder engines at its Georgetown, Kentucky plant by investing
$30 million. The company will increase engine production to more
than 500,000 annually from 400,000 at the plant, starting from
August next year.
Currently, the Kentucky plant assembles engines for Toyota's
Avalon, Camry and Venza models. The enhanced capacity will help the
company supply engines for Camry and Camry Hybrid, manufactured in
Georgetown, and RAV4, assembled in Woodstock, Ontario.
The expansion project is anticipated to create 80 jobs at the
plant. It will raise the total workforce at the plant to 6,700
workers and total investment to more than $5.96 billion.
Kentucky is the fourth plant chosen by Toyota for capacity
expansion in recent times. Previously, the company has raised
production in Indiana, West Virginia and Canada plants. So far, the
total investment made by the company for expansionary purposes
amounted to $565 million, adding nearly 1,000 jobs.
Toyota, a Zacks #2 Rank (Buy) stock, posted a 30.5% decline in
profits to ¥283.56 billion ($3.7 billion) or ¥90.20 ($1.17) per
share in its fiscal year ended March 31, 2012 compared with ¥408.18
billion or ¥130.16 in the prior fiscal year. With this, the company
has missed the Zacks Consensus Estimate of $2.52 per share for the
Consolidated revenues in the year dipped marginally by 2% to
¥18.58 trillion ($241.59 billion). Total unit sales increased 0.6%
to 7.35 million units during the fiscal year. Higher unit sales in
Japan (8%), Europe (0.3%) and Asia (6%) were significantly offset
by lower sales in North America (8%) and Other reporting regions
The decrease in revenues and profits was attributable to
challenges faced by the company owing to the earthquake in Japan
and severe flooding in Thailand in 2011 as well as unprecedented
strength of the yen.
For fiscal 2013 ending March 31, 2013, Toyota projected
consolidated vehicles sales to increase 1.35 million units to 8.70
million units. Consequently, the company expects higher
consolidated revenues of ¥22.00 trillion, operating income of ¥1.00
trillion and net income of ¥760.0 billion for the fiscal year
compared with fiscal 2012.
Toyota is the leading automaker in the world. Its product
portfolio consists of a full range of models from passenger cars,
minivans and trucks as well as related parts and accessories. Its
domestic competitor includes
Honda Motor Co.
Nissan Motor Co.
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