Toyota Motor Corp.
) recaptured the sales crown from
General Motors Company
) by selling 9.75 million vehicles globally in 2012, which
exceeded GM's sales of 9.29 million vehicles. Germany's
) came third with sales of 9.07 million vehicles for the year.
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Toyota's global vehicle sales rose 23% in 2012, while overseas
sales improved 19%. Surprisingly, sales in the company's domestic
market surged 35% despite its sluggish economy. Sales of the
company's domestic rival
Honda Motor Co.
) grew 19% to 3.82 million vehicles in the year.
Toyota's victory can be attributed to its impressive product
lineups and marketing initiatives. The automaker lost its No.1
position to GM in 2011 after gaining the title from GM in 2008.
The loss of the crown was driven by its declining reputation due
to a series of safety recalls as well as a negative impact from
natural disasters in Japan and Thailand in 2011.
However, Toyota vowed to regain the top position by increasing
its dependence on the non-U.S. markets, especially the high
growth emerging markets. In 2012, the company reported an
impressive 26.6% jump in sales to 2.08 million vehicles in the
U.S. driven by strong sales across its lineups as it recouped the
dealer lots with new vehicles.
Toyota plans to sell 9.91 million vehicles globally this
year, reflecting an estimated rise of 1.6% from 2012. It aims to
generate 50% of global sales from the emerging markets by 2015,
up from 45% presently. These would also help the automaker face
burgeoning automakers in the markets such as Korea's Hyundai
Motor apart from Volkswagen.
Toyota, a Zacks Rank #3 (Hold) stock, saw more than a 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 attributed 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
However, Toyota projected lower consolidated vehicles sales of
8.75 million units for fiscal 2013 ending March 31, 2013, 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.