Tokyo, Japan, May 8, 2008 - (JCN Newswire) - Toyota Motor Corporation ('TMC'; TSE: 7203) today
announced operating results for the fiscal year ended March 31, 2008.
On a consolidated basis, net revenues for the fiscal year ended March 31, 2008 totaled 26.29
trillion yen, an increase of 9.8 percent compared to the last fiscal year. Operating income
increased 1.4 percent to 2.27 trillion yen, and income before income tax, minority interest and
equity in earnings of affiliated companies was 2.44 trillion yen. Net income increased 4.5
percent to 1.72 trillion yen. All of these figures marked record results.
Operating income increased by 31.7 billion yen to 2.27 trillion yen, due to positive
contributions of 290.0 billion yen from marketing efforts and 120.0 billion yen from cost
reduction efforts, and negative factors including 48.1 billion yen of valuation losses on
interest rate swaps. Excluding this 48.1 billion yen, operating income on a non-USGAAP basis
increased substantially by 79.8 billion yen to 2.34 trillion yen. Equity in earnings of
affiliated companies increased by 60.6 billion yen to 270.1 billion yen, due to strong results
of joint venture companies in China.
Commenting on the results, TMC President Katsuaki Watanabe said,"For this fiscal year, we
posted our highest ever results in both revenue and profits. There are two key points for these
results. First, our profit structure has become more geographically balanced, with growing
contribution from resource-rich countries and emerging countries. We believe our growth
strategy of utilizing every opportunity across the full product line-up and in all regions have
shown strong results. Second, net income has steadily increased due to the growth of operating
profit from global operations and equity in earnings of affiliated companies. Growth of equity
in earnings has been particularly strong and has more than doubled over the last four years,
mainly due to the rapid growth of Chinese operations."
TMC also announced a cash dividend for the full fiscal year of 140 yen per share, an increase
of 20 yen over the last fiscal year. Watanabe added,"As a result, our dividend payout ratio
will improve to 25.9% from 23.4% last year. We will aim to achieve a 30% consolidated dividend
payout ratio as well as to strive for continuous growth of dividend per share."
In fiscal year 2008, Toyota's consolidated sales reached 8.91 million units, an increase of
389 thousand units over the last fiscal year.
In Japan, vehicle sales decreased by 85 thousand units over the last year, to 2.19 million
units. Operating income from Japanese operations was 1.44 trillion yen which was second only to
the last fiscal year. Exports increased due to strong demand mainly in resource-rich countries
and emerging countries. Toyota group's market share including mini-vehicles reached a record
level of 42.0 percent due to successful launches of new models.
In North America, vehicle sales reached 2.96 million units, an increase of 16 thousand units.The new Camry launched in 2006 became the best-selling passenger car for six consecutive years,
and sales of the Prius increased remarkably due to additional production capacity in Japan. As
a result, Toyota's market share in the U.S. reached a record high of 16.3 percent. The
dramatic decline in interest rates in the U.S. during this fiscal year resulted in an
exceptional increase in valuation losses on interest rate swap transactions. Operating income
was 305.3 billion yen for this fiscal year, but on a non-USGAAP basis, excluding the valuation
losses on interest rate swap transactions of 91.4 billion yen, was 396.7 billion yen, despite
profit decline in the financial business due to a slow down in the economy.
In Europe, operating income increased by 4.2 billion yen, to 141.5 billion yen. In Western
Europe, sales of the Auris and Prius were strong although the markets in general saw a sluggish
growth rate. Sales in Russia and Eastern Europe showed steady growth due to strong sales of
models such as the Camry and Avensis. Toyota will continue to respond to growing local demand
and further increase profits.
In Asia, operating income more than doubled to 256.4 billion yen over the last fiscal year.
Improved profitability in Asia has become an important driver for Toyota's strong growth.
Sales of models such as the IMV and Yaris were strong in countries including Indonesia and
Thailand. Increase of production capacity in Thailand, in order to meet strong demand for the
IMV vehicles from countries outside of Asia, showed steady contributions. Production of the
new Corolla which started in Thailand and Taiwan this year, is expected to contribute to profit
growth in Asia.
In Latin America, Oceania and Africa, operating income for this fiscal year increased more
than ever by 60.4 billion yen, to 143.9 billion yen. Vehicle sales in all the three regions
increased due to strong sales of models, such as the Corolla in Brazil, the IMV in Argentina
and the Camry in Australia, which were developed to satisfy local tastes. The strong brand
values of Toyota contributed to the high profitability.
TMC also announced its consolidated financial forecast for the fiscal year ending March 31,
2009. Based on an exchange rate of 100 yen to the U.S. dollar and 155 yen to the euro, TMC
forecasts consolidated net revenues of 25.00 trillion yen, operating income of 1.60 trillion
yen and net income of 1.25 trillion yen.
Watanabe concluded by commenting on the outlook."We are facing a severe business environment.
However, Toyota considers this headwind as a valuable opportunity to turn it into a more
flexible and stronger company. To this end, we will aim to eliminate waste and review the
process and structure of every aspect of our operations. Through such internal reforms, we will
develop human resources and thus work to establish a company with true strength and long-term
stability."
For further information and details on financial results, please visit www.toyota.co.jp .
Cautionary Statement with Respect to Forward-Looking Statements:
This release contains forward-looking statements that reflect Toyota's plans and expectations. These forward-looking statements are not guarantees of future performance and involve known
and unknown risks, uncertainties and other factors that may cause Toyota's actual results,
performance, achievements or financial position to be materially different from any future
results, performance, achievements or financial position expressed or implied by these
forward-looking statements.
About Toyota Motor Corporation
Established in 1937, Toyota Motor Corporation (TSE: 7203; NYSE: TM), which celebrates its 70th
anniversary this year, has developed into one of the world's best known automobile
manufacturers. The Toyota Group sold over 8.5 million vehicles under the Toyota, Lexus,
Daihatsu, and Hino brands in more than 170 countries and regions in fiscal 2007. Further, the
Company's production is firmly rooted in local communities, with 52 companies manufacturing
vehicles and parts in 26 countries and regions. Toyota had approximately 300,000 employees on a
consolidated basis at the end of fiscal 2007. The company is headquartered in Aichi, Japan. For
more information, please visit www.toyota.co.jp/en/index.html .
Source: Toyota Motor Corporation
Contact:Toyota Motor Corporation
Corporate Communications Department/
Public Affairs Division
Tel: +81-3-3817-9150
URL: http://www.toyota.co.jp/en
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