Toyota halves profit on sales downturn
June 22, 2009 by David Twomey
Australia’s biggest seller of cars, Toyota, has seen its profit cut almost in half during the past year as a result of slump in new vehicle sales.
In its 50th anniversary year Toyota Australia has reported a net profit of $123.4 million for its 12 month financial period to March 31, almost half the figure of $242.2 million that its reported in the previous year.
The profit was reported on sales revenue of $8.8 billion, a drop from the previous year’s figure of $9.4 billion.
Domestic retail sales volume, including Lexus vehicles, during the financial period was 229,189 units, for a 24.3 per cent share of Australia’s new vehicle sales. Export sales increased to $1.7 billion with a financial year volume of 94,955.
During the financial year, manufacturing operations at Altona, in Victoria, produced 130,228 Camry and Aurion vehicles for domestic and export markets, compared with 148,810 vehicles the previous year.
Toyota Australia President and CEO Max Yasuda says the second half of the year saw the global financial crisis severely impact all aspects of the company’s business.
“The headline number is misleading. The emergence of the global financial crisis in the second half of the year led to a severe and unprecedented deterioration in our vehicle sales, resulting in lower profitability.
“I expect local conditions will continue to be difficult for carmakers and suppliers for the remainder of 2009.
“Australia’s manufacturing competitiveness is being impacted by the global economic crisis, fluctuations in currency, price increases in raw materials and decline in vehicle and parts demand.”
The company’s statement says Toyota Australia is already taking measures to support its operations during this period to ensure it is in a stronger position when the market recovers.
“We have intensified our supplier and dealer development programs to ensure we have a healthy and sustainable local car industry, Mr Yasuda said.
“Also, we have undertaken cost efficiency programs, implemented an executive pay freeze and are using non-production time to develop our employees.
“We are doing everything possible to support our people, our suppliers and dealers so we can weather the storm.”
Toyota Australia estimates that industry domestic vehicle retail sales for the calendar year to be 850,000 units.
The company also says that the continuance of the current severe global conditions will result in exports being significantly lower.
Toyota will continue to adjust production in line with market demand. Toyota Australia is applying all its efforts to ensure results are above break even for the fiscal year ending 31 March 2010.
“There is no doubt that the outlook for 2009 financial period remains challenging. But there will be opportunities for companies that can rapidly adjust,” Mr Yasuda added.
“Fortunately, Toyota, its suppliers and dealers have acted quickly, adjusting plans in line with the new economic environment.”
Mr Yasuda noted the industry policy settings introduced by the Victorian and Federal Governments aimed at building the long-term sustainability of the local car industry.
Toyota has received a Federal Government grant to build a Camry Hybrid model at Altona from next year.
Print it: 
At least THEY made a profit! unlike some!
But Figjam, I thought white goods was always a profitable business!
That’s good news! Toyota produces great cars. I’m not really surprised that they were able to increase profit. Kudos Toyota!
Devil666 ur correct. Now if they were producing quality cars like the rest of the automotive industry, they would be bleeding money. THey deserve to lose money.
Devil666 Says:
“But Figjam, I thought white goods was always a profitable business!”
Well judging by the status of the local white good taxi manufactures, it obviously isn’t!
How was Toyota OZ allowed to make a profit when Toyota Global lost heaps? Did they get their transfer pricing stuffed up, or was the profit due to the subsidy from the OZ taxpayers?
It’s not hard to make money by offering an “off the shelf product”, assemble it here with little to no R and D, and pump them out to the great rental / government massers. well done the big T for keeping production here and not importing the same thing from Thailand, but my guess is the profits came from their Imports not the local or exports divisions.
Hmmm $123.4 Mil net profit…. Suplemented by 35 mil from Mr K Rudd and another 35 mil from the Victorian government… added to absolutely no expenditure on design or engineering… life must be difficult under those circumstances.
Yes GM and Ford got money off Govco, but the majority (I’ll speak Ford wise here) is tied to at least a dollar for dollar investment rather than an open grant……
Use the one platform for nearly every model and sell the same thing worldwide and u make a profit.
“u can have any colour as long as it a Camry derivative”
Why do we give them money?
We are a soft touch!
realcars Says:”
Use the one platform for nearly every model and sell the same thing worldwide and u make a profit.”
Yes, thats what a Global platform of a true world class car enables!!