Toyota Australia posts $32.6m loss

By Tim Beissmann
June 21st, 2012

FIND DEALS

Australia’s largest automotive brand, Toyota, has posted an after-tax loss of $32.6 million for the 2011/12 financial year ending March 31.

The loss comes on the back of a net $1 billion drop in sales, which Toyota Australia attributes largely to the devastating natural disasters that affected its production facilities in two key regions in Asia last year: the Japan earthquake in March and the Thailand floods in October.

Supply of vehicles and parts to Toyota Australia was limited for most of 2011 and saw combined domestic sales of Toyota and Lexus vehicles fall more than 30,000 units from 217,365 to 187,328. Total revenue fell from $8.27 billion to $7.25 billion as a result.

The announcement of the loss brings to a close a difficult year for Toyota Australia. In January, the local manufacturer axed 350 workers from its Altona production plant, blaming the difficult market conditions and the high Australian dollar.

Toyota Australia president and CEO Max Yasuda said the 2011/12 result was further evidence the company needed to change the way it operates to strengthen its local operations.

“While we cannot control external factors like natural disasters or the strong Australian dollar, there are things we can do to make Toyota Australia leaner and stronger to create sustainable and profitable business operations,” Yasuda said.

“We have had to make immediate change during recent months and adjust our manufacturing workforce.

“This was an extremely difficult decision to make but was absolutely critical if we want to strengthen our foundation and grow in the future.”

Despite facing a number of challenges including the high Australian dollar and intensifying market competition, Yasuda believes Toyota’s range of new and refreshed models like the Camry, Aurion, Prius C, Prius V and 86 sports car will help the company achieve an improved fiscal result in the 2012/13 financial year.

“We are expecting the release of these new vehicles will translate to an increase in sales and solidify Toyota’s position as the number one automotive brand in Australia,” he said.

Toyota has made a strong start to the 2012/13 financial year from a sales perspective. Across April and May 2012, a total of 38,119 Toyota and Lexus vehicles have been sold in Australia, up 49.6 per cent compared with the same two-month period in 2011.

Prior to 2011, Toyota Australia was returning consistently strong financial results, with combined after-tax profits totalling $473.5 million in the previous three financial years.

Today’s announcement from Toyota comes a little over a month after Australia’s two other local manufacturers, Ford and Holden, revealed their financial results.

Ford Australia posted its largest ever annual loss, plummeting $274 million into the red in 2011, while Holden enjoyed an $89.7 million profit – a figure identical to the level of taxpayer funding the car maker received last year.

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D4D

They made 473.5m last 3 years and make a tiny loss of 32.6m this year…and they already cry for poor…fair call!!
Smart US

that how the business goes… you making profit only profit no matter you do profit… if you make loss you f$cked – they sack ppl and cry for gov donations
- Guest
  
  what?
- fbholden
  
  I hope English is your second language……
  - Smart US
    
    4th
    - Noddy
      
      The US speaks English too, Smart one…
Leighh

Holden enjoyed a profit??? What a joke……..it aint no profit if you get bailed out all the time.
- JamesB
  
  Holden builds a Sh!ttadore then government rewards them with money to turn it into the car it should be in the first place. BMW make great cars, so why won’t the Gizzard admin exempt them from the LCT and other rubbish taxes so that more and more Australians get a taste of proper engineering and real fun.
  - Kaas
    
    Your stupid James thats why you’re wondering.
    
    The Government isnt helping Holden because of quality of their cars, but because they employ Australians. And if they fold over, tens of thousands of Australians are high risk to lose their jobs also. Most of these Australians have families… So in effect the economy gets shafted further.
    - JamesB
      
      You call someone stupid but don’t know the difference between ‘your’ and ‘you’re’?
  - JooberJCW
    
    If a local manufacturer dies theres going to be massive implications for the economy MUCH more than the handout itself, we are talking about no tax money from company no tax money from the individual workers out of the job. Not to mention related businesses relying on livelyhood suppling the manufacturer itself.
Leighh

Holden enjoyed a profit??? What a joke……..it aint no profit if you get bailed out all the time.
Doctor

I’d hate to think how much per unit Toyota loses on Camry…..
- TG
  
  The loss probably wouldn’t be as substantial if they didn’t utilise that ad with the guy in speedos jumping off a cliff.
Doctor

I’d hate to think how much per unit Toyota loses on Camry…..
Andrew M

Just goes to show how much the imports in Toyotas range shores up their bank balance.

Aurion and Camry must run at a massive loss.
The imported models are basiclly a buy and sell exercise meaning they dont need the volume to keep viable.
Its obvious Toyota Aus needs to buy and sell lots of imports to prop up the Australian division bank balance.

I also love how Toyota claims the new models and extra sales will solidify Toyotas sales position in Aus…….
W T F, Toyota still leaves every one in their dust for sales as is
ABCDEFG

Oh what a fweelin Toyota.
Dazzzzzz

Note to ATO: Transfer Pricing?
- Mazda pays proper AU tax
  
  Toyota’s been getting away with paying no tax in AU for many, many years.
JamesB

Cause of Toyota loss: 4-SPEED AUTOMATIC!!!
- Phil
  
  Yaris, Corolla, Hilux are top sellers with the majority of those customers happily forking out a extra $2000 for that 4 speed auto. A 5 or 6 speed auto would cost more to manufactuer and they’d have to spend money developing it. None of the other cars in their range which upgraded beyond the 4 speed have achieved any real increase in sales, so why bother upgrading it?
  The typical Toyota automatic buyer wouldn’t know or care how many gears their car had.
  - Sik_civic
    
    So they should keep it for the next 20 years? Comon now…
    - http://www.facebook.com/antiscab Matt Lacey
      
      that strategy works for ford and holden
Heath Russell

looking at how much is charged for landcruisers and going out west to the mines its basically all you can see around the mines is hilux and landcruisers, how do they make a loss ?
ninja

Heath Russell,
Toyota does have monopoly when it comes to light vehicles used in mine pits and even for managers remuneration vehicles, but they are sold at extreme discount to what normal consumers pay. I doubt they’ll make much money out of the vehicle themselves, but they probably do make good money out of the accessories that are fitted, which often run into 10-15k.
They will find it tougher going forward unless something changes drastically. The big mining companies are gearing up for tough times ahead (despite the BS articles continually cropping up about mining booms. maybe iron orer is still doing ok but all others are beginning to struggle with the excessive cost of operating in Australia). They are cutting down on capital spend, putting on hiring freeze and new vehicle purchases will be discouraged.
Trust me, things are heading in the direction of GFC level and it won’t be long before we are there.
FYI, i’m in the industry.
- D4D
  
  Plus, the whole WA Toyota operations is seperate from Toyota Australia…it owned by different parties and have different set of books…so how much the WA Toyota earns is none of the business of Toyota Australia…
  - RAV
    
    I’m hoping as a separate entity that Toyota WA leave the spec as advertised or give the customer the choice. My initial thoughts where that the lack of an explanation since the leak was pretty poor, however after reading the explanation I think they would be better saying nothing. Pretty amateur effort all round and most probably goes along way to explaining the companies loss last financial year.