Business Hilights
Tracking Nigeria's Headline Business News Online

Toyota mute on African market, relies more on Europe, America to post $21.66b Profit

Leading global auto conglomerate, Toyota Motor Corporation, has released its annual financial report ended March 31st and declared $21.66billion operating profit powered by sales of 10.6million vehicles worldwide.
However, nothing was said on Africa market performance as emphasis grew on activities in the North American market, Europe and Asia within the period under review. Recall that Toyota Nigeria remains top market leader in car sales having been patronized by government and blue-chip corporations, but mention was not made on Africa or Nigeria’s sales within the period under review.
Whereas global wholesale volume inched ahead 0.1 percent to 8.98 million vehicles, earnings results announced by the Chief Executive Vice President, Koji Kobayashi showed that lower incentives boosted performance in the critical North American market, Toyota’s biggest. Also, regional operating profit in North America increased 8.3 percent 144.1 billion yen ($1.30 billion) in the 12-month period, as regional wholesale volume declined 2.2 percent to 2.75 million vehicles.
Kobayashi, who equally serves as the CFO, noted that the regional operating profit margin languishes around 2 percent within the period under review, saying “That is far below the target of 8 percent operating profit margin for the region”.
Kobayashi said he wasn’t confident Toyota could reach that target, as intended, in the fiscal year ending March 31, 2021, adding that Toyota will further work to control incentives, improve the model mix and ratchet up factory efficiency to come closer.
According to him, “I want to continue to argue that message, or the message will be lost,” and “We are always working with that goal in mind.”
Figures revealed that between the January-March period, average spiff spending on Toyota and Lexus brand cars by Toyota Motor Sales U.S.A. dropped 5.4 percent and was about $1,250 below the industry average of $3,574 per vehicle, according to figures from Autodata Corp.
Average industry outlays declined 4.6 percent in the quarter.
The Toyota brand’s incentives fell 8.1 percent in the January-March quarter, from a year earlier, to an average of $1,967 per vehicle. Average spending at Lexus decreased 1.3 percent to $4,840, according to figures from Autodata Corp.
In Europe, wholesale volume increased 2.7 percent to 994,000 vehicles in full fiscal year. European regional operating profit expanded to 121.0 billion yen ($1.09 billion), from 77.1 billion yen ($695.8 million) the year before.
Citing the impact from the accounting change for handling of depreciation and further cost cutting efforts, Toyota predicted net income would increase 19.5 percent in the current fiscal year ending March 31, 2020, while operating profit advances 3.3 percent.
Toyota forecast that global wholesale volume will increase 0.3 percent to 9.0 million vehicles in the current fiscal year. It predicts North American sales will decline 1.6 percent to 2.7 million vehicles, while European volume improves by 3.6 percent to 1.03 million units. It says global retail sales should rise 1.3 percent to 10.74 million.
Besides, Business Hilights gathered that Toyota’s on the financial statement released Wednesday, indicated declined of 25 percent to 1.88 trillion yen ($16.96 billion) in net income even as revenue increased 2.9 percent to 30.23 trillion yen ($272.78 billion)
.Global retail sales advanced 1.6 percent to 10.6 million vehicles in the full fiscal year, including results from its Daihatsu small-car subsidiary and truck-making affiliate Hino.