Toyota Motor Corp.
) saw more than threefold increase in profits to ¥257.92 billion
($3.28 billion) or ¥81.44 ($1.04) per share in the second quarter
of fiscal year ended September 30, 2012 from ¥80.42 billion or
¥25.65 in the same quarter of prior fiscal year.
The increase in profits can be attributable to strong demand
for Toyota vehicles as well as positive impact from the company's
cost control measures. However, profits were lower than the Zacks
Consensus Estimate of $1.62 per share.
Revenues in the quarter grew 18.2% to ¥5.41 trillion ($68.75
billion) on a 14.9% rise in sales volume to 2.16 million units.
Vehicle sales increased in all the regions, except Europe.
Operating income more then quadrupled to ¥340.61 billion ($4.33
billion) from ¥75.39 billion in the second quarter of previous
In the Automotive segment, revenues appreciated 19.7% to ¥5.00
trillion ($63.57 billion). The segment operating profit increased
¥246.84 billion ($3.14 billion) to ¥239.37 billion ($3.04
billion) from a loss of ¥7.47 billion in the prior fiscal year
quarter. The improvement in profits was attributable to increases
in both production volume and vehicle unit sales as well as
positive impact from cost reduction measures.
In the Financial Services segment, revenues went up marginally
by ¥520 million to ¥264.58 billion ($3.36 billion). Operating
profits rose 14.9% to ¥87.77 billion ($1.12 billion) from ¥76.39
billion a year ago due to an increase in valuation gains from
transactions such as interest rate swaps measured at fair value,
despite credit losses including provision and reversal in sales
In All Other segment, revenues scaled up 6.4% to ¥143.25
billion ($1.82 billion). Operating income surged 32.1% to ¥13.13
billion ($167.0 million) from ¥9.94 billion a year ago.
Toyota had cash and cash equivalents of ¥1.67 trillion ($21.18
billion) as of September 30, 2012 compared with ¥1.68 trillion as
of March 31, 2012. Long-term debt decreased to ¥11.73 trillion
($149.10 billion) as of September 30, 2012 from ¥12.0 trillion as
of March 31, 2012. However, debt-to-capitalization ratio remained
almost stable at 52.2% compared with 52.0% as of March 31,
In the first six months of fiscal 2013, Toyota's net cash flow
from operations improved to ¥1.24 trillion ($15.76 billion) from
¥489.36 billion in the same period of prior fiscal year,
primarily driven by a significant ¥501.22 billion ($6.37 billion)
rise in profits and an ¥59.45 billion ($755.98 million) increase
in deferred income taxes. Meanwhile, capital expenditures (net)
increased to ¥335.38 billion ($4.26 billion) from ¥299.38 billion
a year ago.
Lower Sales Guidance
For fiscal 2013 ending March 31, 2013, Toyota projected lower
consolidated vehicles sales of 8.75 million units, down 50
thousand units from the prior guidance. The automaker also
lowered its consolidated revenues outlook to ¥21.30 trillion (up
14.6% from fiscal 2012) from the prior guidance of ¥22.00
trillion. The downward revision of sales outlook was based on
difficulties in Chinese and European markets.
However, it raised operating income guidance to ¥1.05 trillion
(up 195.3% from fiscal 2012) from the prior level of ¥1.00
trillion and profits to ¥780.0 billion (175.1%) from the previous
projection of ¥760.0 billion.
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.
The company's domestic competitors include
Honda Motor Co.
Nissan Motor Co.
). Despite better results, the company to currently retains a
Zacks #3 Rank on its shares, which translates to a short-term (1
to 3 months) rating of Hold, owing to the global economic
weakness and problems in China, the company's one of the biggest
(Exchange rate: $1 = ¥78.64)
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