Toyota Motor Corp.
) posted a 22.2% rise in earnings per share (EPS) to ¥31.55 (39
cents) in the third quarter of fiscal 2013 ended on Dec 31, 2013
from ¥25.81 in the same quarter of prior fiscal year. The EPS was
lower than the Zacks Consensus Estimate of $1.23.
Net income rose 23.4% to ¥99.91 billion ($1.23 billion) from
¥80.94 billion a year ago. The increase was attributable to lower
provision for income taxes during the quarter.
Revenues increased 9.3% to ¥5.32 trillion ($65.56 billion) on a
7.3% rise in unit sales to 2.11 million vehicles. Among all the
geographic markets, unit sales rose at the fastest pace in Asia
(53.4%) and declined at the fastest pace in Japan (15.0%).
Operating income dipped 16.7% to ¥124.76 billion ($1.54 billion)
from ¥149.68 billion in the third quarter of previous fiscal
year. The decline was attributable to a 10.1% rise in costs and
expenses during the quarter.
In the Automotive segment, revenues escalated 9.3% to ¥4.88
trillion ($60.14 billion). However, operating profit decreased
23.5% to ¥43.72 billion ($538.94 million) due to higher operating
In the Financial Services segment, revenues went up 11.5% to
¥293.93 billion ($3.62 billion). Nevertheless, operating profits
dipped 17.3% to ¥69.05 billion ($851.08 million) due to the
impact of credit losses including provision and reversal in sales
In All Other segment, revenues scaled up 5.9% to ¥145.59 billion
($1.79 billion). Operating income inched up 1.0% to ¥15.42
billion ($190.08 million) due to lower operating expenses.
Toyota had cash and cash equivalents of ¥1.24 trillion ($15.30
billion) as of Dec 31, 2012 compared with ¥1.68 trillion as of
Mar 31, 2012. Total debt decreased to ¥8.85 trillion ($158.97
billion) as of Dec 31, 2012 from ¥12.0 trillion as of Mar 31,
2012. However, debt-to-capitalization ratio remained almost
stable at 53.4% compared with 52.0% as of Mar 31, 2012.
In the first nine months of fiscal 2013, Toyota's net cash flow
from operations improved to ¥1.75 trillion ($21.52 billion) from
¥770.69 billion in the same period of prior fiscal year,
primarily driven by a significant rise in profits, increase in
deferred income taxes and favorable changes in operating assets
and liabilities, and other. Capital expenditures (net) increased
to ¥544.74 billion ($6.71 billion) from ¥441.85 billion a year
For fiscal 2013 ending March 31, 2013, Toyota raised its
consolidated vehicle sales guidance to 8.85 million units from
8.75 million units. Consequently, the automaker projected higher
consolidated revenues of ¥21.80 trillion (reflecting an expected
increase of 17.3%) compared with fiscal 2012. The upward revision
of sales outlook was based on higher overseas vehicle sales,
primarily in North America
The company also expects operating income guidance of ¥1.15
trillion (up 223.4% from fiscal 2012) and net income of ¥860.0
billion (203.3%) for the fiscal year.
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.
Despite better results, the company currently retains a
Zacks #4 Rank on its shares, which translates to a short-term (1
to 3 months) rating of Sell.
Few stocks that are performing well in the industry where the
company operates include
Commercial Vehicle Group Inc.
STRATTEC SECURITY CORPORATION
). These stocks carry a Zacks Rank #1 (Strong Buy).
COMML VEHICLE (CVGI): Free Stock Analysis
OSHKOSH CORP (OSK): Free Stock Analysis
STRATTEC SEC CP (STRT): Free Stock Analysis
TOYOTA MOTOR CP (TM): Free Stock Analysis
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