Oh What A Feeling Toyota
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Toyota Motor Corporation has posted record earnings for the quarter ending 30 June 2007, on the back of stronger than expected vehicle sales outside Japan.

Despite a fall within Japan, where vehicle sales decreased by 43,000 units to 500,000, consolidated sales for the first quarter were 2.16 million units, up 71,000 units on the corresponding period last financial year.

Consolidated vehicle sales for the first quarter amounted to 2.16 million units, an increase of 71 thousand units compared with the same period last fiscal year. This was driven by an improvement in sales across Toyota’s range including strong sales of the Lexus LS series, particularly its hybrid model launched in May 2007.

The company also experienced an increase in domestic production to meet growing overseas demand.

Takeshi Suzuki, TMC Senior Managing Director, said: “We posted substantial increases in both revenues and profits, our highest ever quarterly results.

“Operating income showed a steep increase of 163.0 billion yen compared with the first quarter of the previous fiscal year, due to improved marketing efforts, including higher sales volume and improvement in the product mix, and cost reduction efforts which offset higher raw material costs.”

Sales in Asia increased by 29, 000 vehicles to 222 thousand vehicles, with sales volume steadily increasing, mainly in Indonesia, and the South East Asian market showing signs of continuing recovery.  Its consolidated subsidiaries in China also contributed to the increase.

Vehicle sales in North America totalled 762 thousand units, up 15 per cent thanks in part to the launch of new models such as the Tundra and the Lexus LS, and strong sales of high fuel efficiency models such as the Prius.

In Europe, sales increased by 25 thousand vehicles, to 333 thousand vehicles. Operating income increased by 2.0 billion yen, to 38.5 billion yen, due to the successful launch of the Auris earlier this year, and continued steady sales of the Yaris and the Aygo.

In the other regions including Africa, Oceania and South and Central America, sales reached 345 thousand vehicles, an increase of 45 thousand units.  Operating income totaled 38.6 billion yen, an increase of 22.7 billion yen.

TMC estimates that the projected consolidated vehicle sales for the fiscal year ending March 31, 2008 will be 8.89 million units, which is unchanged from TMC’s initial forecast announced in May 2007.  The company’s consolidated revenues and earnings forecast for the fiscal year also remains unchanged, with consolidated net revenues of 25.0 trillion yen, operating income of 2.25 trillion yen and net income of 1.65 trillion yen.

Net revenues for the first quarter totaled 6.52 trillion yen, up 15.7 per cent on the same period last fiscal year.  

Operating income increased 31.8 percent to 675.4 billion yen, while income before income taxes, minority interest and equity in earnings of affiliated companies was 739.0 billion yen. Net income increased by 32.3 percent to 491.5 billion yen.

Positive contributions to operating income totalled 220.0 billion yen, consisting of 100.0 billion yen from marketing efforts, 100.0 billion yen from changes in foreign exchange rates and 20.0 billion yen from cost reduction efforts.

Negative factors totaled 57.0 billion yen.