Toyota reports profit up 36 percent
11-07-06, 05:57 PM
#1
Super Moderator
Thread Starter
Toyota reports profit up 36 percent
Tuesday, November 07, 2006
Christine Tierney / The Detroit News
Toyota Motor Corp., the world's richest automaker, pre-dicted it would earn a record $13 billion this year after reporting a 34 percent surge in second-quarter profit, reflecting strong U.S. vehicles sales and a weaker yen.
Toyota's U.S. shares jumped Tuesday as the company's $3.4 billion profit for the three months ended Sept. 30, the second quarter of the Japanese fiscal year, exceeded investors'expectations.
"For the first half, Toyota posted record consolidated results across the board," Toyota Executive Vice President Mitsuo Kino****a said in a statement.
The quarterly results bolstered investors' confidence that Toyota's management is focusing as much on profitability as it does on growth.
The Japanese automaker is closing in on General Motors Corp., the world's largest automaker for more than 70 years, with plans to sell 9.8 million vehicles in 2008.
In the first nine months of this year, Toyota sold 6.61 million vehicles, compared with GM's sales of 6.89 million in the same period.
Recently, however, Toyota told investors it was aiming for a 10 percent profit margin a level of profitability normally associated with luxury carmakers.
The Japanese automaker also announced that it was buying a 5.9 percent stake in Isuzu Motors Ltd., formerly one of GM's part-ners in Japan, for $373 million.
A year ago, Toyota bought part of GM's stake in Fuji Heavy Industries Ltd., as the U.S. automaker sold assets, including minority holdings in Japanese automakers, to raise cash.
Toyota said it planned to work jointly with Isuzu on developing diesel engines and environmental technologies.
This year, Toyota has benefited from a decline in the Japanese yen relative to other major currencies that boosted its export earnings.
Toyota's exports to the United States have surged more than 70 percent so far this year, as demand for its vehicles outpaced the automaker's U.S. production capacity.
Toyota's U.S. sales are up 12 percent in a market that is down slightly overall. Its share of the U.S. market stood at 15.5 percent in October, helped by strong sales of the new RAV4 sport-utility vehicle, the introduction of the Yaris subcompact and new FJ Cruiser.
The automaker has just begun producing Tundra pickup trucks at a new plant in San Antonio, Texas, and it expects to build more factories in North America.
The weaker yen accounted for half of the positive contributions to Toyota's operating income, which rose 35 percent despite an increase in research and development spending, the company said in a statement.
Toyota said it would buy its Isuzu stake from two Japanese trading companies, Mitsubishi Corp. and Itochu Corp. Last spring, GM sold its 7.9 percent stake in Isuzu to Mitsubishi, Itochu and Mizuho Corporate Bank for $300 million as part of an effort to sell assets and conserve cash.
Christine Tierney / The Detroit News
Toyota Motor Corp., the world's richest automaker, pre-dicted it would earn a record $13 billion this year after reporting a 34 percent surge in second-quarter profit, reflecting strong U.S. vehicles sales and a weaker yen.
Toyota's U.S. shares jumped Tuesday as the company's $3.4 billion profit for the three months ended Sept. 30, the second quarter of the Japanese fiscal year, exceeded investors'expectations.
"For the first half, Toyota posted record consolidated results across the board," Toyota Executive Vice President Mitsuo Kino****a said in a statement.
The quarterly results bolstered investors' confidence that Toyota's management is focusing as much on profitability as it does on growth.
The Japanese automaker is closing in on General Motors Corp., the world's largest automaker for more than 70 years, with plans to sell 9.8 million vehicles in 2008.
In the first nine months of this year, Toyota sold 6.61 million vehicles, compared with GM's sales of 6.89 million in the same period.
Recently, however, Toyota told investors it was aiming for a 10 percent profit margin a level of profitability normally associated with luxury carmakers.
The Japanese automaker also announced that it was buying a 5.9 percent stake in Isuzu Motors Ltd., formerly one of GM's part-ners in Japan, for $373 million.
A year ago, Toyota bought part of GM's stake in Fuji Heavy Industries Ltd., as the U.S. automaker sold assets, including minority holdings in Japanese automakers, to raise cash.
Toyota said it planned to work jointly with Isuzu on developing diesel engines and environmental technologies.
This year, Toyota has benefited from a decline in the Japanese yen relative to other major currencies that boosted its export earnings.
Toyota's exports to the United States have surged more than 70 percent so far this year, as demand for its vehicles outpaced the automaker's U.S. production capacity.
Toyota's U.S. sales are up 12 percent in a market that is down slightly overall. Its share of the U.S. market stood at 15.5 percent in October, helped by strong sales of the new RAV4 sport-utility vehicle, the introduction of the Yaris subcompact and new FJ Cruiser.
The automaker has just begun producing Tundra pickup trucks at a new plant in San Antonio, Texas, and it expects to build more factories in North America.
The weaker yen accounted for half of the positive contributions to Toyota's operating income, which rose 35 percent despite an increase in research and development spending, the company said in a statement.
Toyota said it would buy its Isuzu stake from two Japanese trading companies, Mitsubishi Corp. and Itochu Corp. Last spring, GM sold its 7.9 percent stake in Isuzu to Mitsubishi, Itochu and Mizuho Corporate Bank for $300 million as part of an effort to sell assets and conserve cash.
11-08-06, 05:27 AM
#3
Not only that, but they are aiming or 10% profit margin, which is crazy for maker that produces millions of Yaris's, Camry's and Corolla's.
11-08-06, 05:47 AM
#4
Lexus Fanatic
Join Date: May 2003
Location: Massachusetts
Posts: 7,864
Likes: 0
Received 0 Likes
on
0 Posts
They need to take these profits and dump them into assuring Toyota remains the highest quality automaker.
...and they need to bring the Supra back.
They have so much money that they could sell a $40,000 Supra for $20,000
and they'd be just fine. Well, this wouldn't work because they'd have to slash all the other model prices. But seriously, why isn't Toyota building numerous sports cars? It shouldn't matter that there isn't a mass market for them.
...and they need to bring the Supra back.
They have so much money that they could sell a $40,000 Supra for $20,000
and they'd be just fine. Well, this wouldn't work because they'd have to slash all the other model prices. But seriously, why isn't Toyota building numerous sports cars? It shouldn't matter that there isn't a mass market for them.
11-08-06, 06:07 AM
#5
Lexus Champion
Join Date: May 2006
Location: FL
Posts: 1,600
Likes: 0
Received 0 Likes
on
0 Posts
2) For the past 6 years, it's SUVs that have been bringing in the big profits, and Toyota put its eggs in that basket by releasing no fewer than 9 (yes, you read that right, "9") SUVs.
Maybe with the current trend of smaller, more efficient vehicles, we'll see more sporty cars released. One can only hope.
11-08-06, 06:21 AM
#6
Lexus Fanatic
Join Date: May 2003
Location: Massachusetts
Posts: 7,864
Likes: 0
Received 0 Likes
on
0 Posts
1) Toyota isn't good at making cars that handle well. When your philosophy is that people only want cheap, numb, disconnected, softly-sprung cocoons, you don't end up with many (any) sports cars.
2) For the past 6 years, it's SUVs that have been bringing in the big profits, and Toyota put its eggs in that basket by releasing no fewer than 9 (yes, you read that right, "9") SUVs.
Maybe with the current trend of smaller, more efficient vehicles, we'll see more sporty cars released. One can only hope.
2) For the past 6 years, it's SUVs that have been bringing in the big profits, and Toyota put its eggs in that basket by releasing no fewer than 9 (yes, you read that right, "9") SUVs.
Maybe with the current trend of smaller, more efficient vehicles, we'll see more sporty cars released. One can only hope.
I bet if Toyota wanted to, they could build something that felt and drove like a BMW. Toyota just hasn't wanted to. They build different types of cars but it doesn't mean that they are incapable of building something else.
Especially with billions in profits.
11-08-06, 06:52 AM
#7
Lexus Champion
Join Date: May 2006
Location: FL
Posts: 1,600
Likes: 0
Received 0 Likes
on
0 Posts
Absolutely, they have funds to do it. But if Toyota is smart (and I bet they are), they're going to invest that money in things that make more money. That doesn't necessarily mean investing in new or improved cars.
I get the feeling that there aren't many mainstream sports cars that turn signifcant profits for an automaker. They tend to be expensive to produce, and don't sell in huge numbers. As a result, it takes a long time to recoup the investment. Look at the S2000 and NSX. They really haven't changed much since they were introduced ~6 and ~18 years ago (my gawd, has it really been 18 years...?). Honda just can't afford to make frequent changes to the designs, and still turn a profit.
All that being said, it still wouldn't hurt Toyota to consider producing something that would go up against the Z, S2000, M3, et.al. And I don't mean produce something that looks like it could compete against them. But that would actually compete against them.
I get the feeling that there aren't many mainstream sports cars that turn signifcant profits for an automaker. They tend to be expensive to produce, and don't sell in huge numbers. As a result, it takes a long time to recoup the investment. Look at the S2000 and NSX. They really haven't changed much since they were introduced ~6 and ~18 years ago (my gawd, has it really been 18 years...?). Honda just can't afford to make frequent changes to the designs, and still turn a profit.
All that being said, it still wouldn't hurt Toyota to consider producing something that would go up against the Z, S2000, M3, et.al. And I don't mean produce something that looks like it could compete against them. But that would actually compete against them.
Trending Topics
11-08-06, 06:53 AM
#8
Guest
Posts: n/a
1) Toyota isn't good at making cars that handle well. When your philosophy is that people only want cheap, numb, disconnected, softly-sprung cocoons, you don't end up with many (any) sports cars.
2) For the past 6 years, it's SUVs that have been bringing in the big profits, and Toyota put its eggs in that basket by releasing no fewer than 9 (yes, you read that right, "9") SUVs.
Maybe with the current trend of smaller, more efficient vehicles, we'll see more sporty cars released. One can only hope.
2) For the past 6 years, it's SUVs that have been bringing in the big profits, and Toyota put its eggs in that basket by releasing no fewer than 9 (yes, you read that right, "9") SUVs.
Maybe with the current trend of smaller, more efficient vehicles, we'll see more sporty cars released. One can only hope.
Toyota can make sporting cars IF IT WANTS. It just has not chosen to do so recently.
EVERYONE is selling SUVs, Toyota, Honda, Nissan, GM, BMW, Benz, etc, so stop the Toyota bashing and be FAIR.
11-08-06, 06:56 AM
#9
Guest
Posts: n/a
Bottom line without cars/trucks sharing everything, without poor interiors, and while not making the sportiest lineup, the market has responded they want Toyota/Lexus/Scion cars at a record level.
Kudos to Toyota and their management. Their challenge right now is to put a stop to the recent recalls and get quality back to #1 with record growth. They also do need to produce some sporting cars to bring help to an aging image.
Kudos to Toyota and their management. Their challenge right now is to put a stop to the recent recalls and get quality back to #1 with record growth. They also do need to produce some sporting cars to bring help to an aging image.
11-08-06, 07:53 AM
#10
Lexus Champion
I must admit that despite my knowledge that Toyota is only able to obtain such a healthy profit margin because of its high sales numbers and global distribution, which allow it to heavily disperse all static and administrative costs involved... I still feel weird looking at the price tag on a new lexus and thinking how much money they'll be making on me if I buy it.
Now the actual variable costs involved with producing the car are probably no different than the average caddy or whatnot, but still.
At least GM's profit margins have been picking up as well. They're not at 36%, in fact they're still struggling to make money, but at least they're not bleeding red.
Now the actual variable costs involved with producing the car are probably no different than the average caddy or whatnot, but still.
At least GM's profit margins have been picking up as well. They're not at 36%, in fact they're still struggling to make money, but at least they're not bleeding red.
11-08-06, 08:42 AM
#11
Lexus Champion
Join Date: May 2006
Location: FL
Posts: 1,600
Likes: 0
Received 0 Likes
on
0 Posts
Yes your right. The last Supra handled poor. The MR-2 handled like crap. The IS and GS while not class leading, are poor handling cars. The Celica also handled like crap.
Toyota can make sporting cars IF IT WANTS. It just has not chosen to do so recently.
EVERYONE is selling SUVs, Toyota, Honda, Nissan, GM, BMW, Benz, etc, so stop the Toyota bashing and be FAIR.
Toyota can make sporting cars IF IT WANTS. It just has not chosen to do so recently.
EVERYONE is selling SUVs, Toyota, Honda, Nissan, GM, BMW, Benz, etc, so stop the Toyota bashing and be FAIR.
I look forward to having more discussions with you that are informed and unbiased.
Last edited by DaveGS4; 11-08-06 at 05:21 PM.
11-08-06, 03:20 PM
#12
1) Toyota isn't good at making cars that handle well. When your philosophy is that people only want cheap, numb, disconnected, softly-sprung cocoons, you don't end up with many (any) sports cars.
2) For the past 6 years, it's SUVs that have been bringing in the big profits, and Toyota put its eggs in that basket by releasing no fewer than 9 (yes, you read that right, "9") SUVs.
Maybe with the current trend of smaller, more efficient vehicles, we'll see more sporty cars released. One can only hope.
2) For the past 6 years, it's SUVs that have been bringing in the big profits, and Toyota put its eggs in that basket by releasing no fewer than 9 (yes, you read that right, "9") SUVs.
Maybe with the current trend of smaller, more efficient vehicles, we'll see more sporty cars released. One can only hope.
Toyota started with SUV's almost 70 years ago. Saying that they put all of their eggs into one basket 6 years ago just shows that you have no clue. Toyota is the biggest producer of SUV's around the world, and its Land Cruiser is the best selling real SUV in the world, for the past 55 years.
Celica has set an record on best handling FWD car in history in SCC Mag. In the same sense, MR2 set an record of best handling RWD car. For their class, both were top of the class handlers and very nimble cars.
Compared to MR2, most BMW's and MB's are buicks... in fact, all of them are buicks compared to that car. You clearly have no sense what true handling car is. There is no Porsche or Ferrari, let alone BMW or MB (LOL) that will give you handling feel of lightweight, midengined car such as Elise and
I think Clarkson said when new Miata was reviewed that you can have more fun in one lap with MRS than in day with new Miata.
So I dont know what do you considered as informed and unbiased, but you clearly have absolutly no clue about what you are talking about. I dont believe talking nonsense is considered as informative, lol.
11-08-06, 06:39 PM
#14
Racer
Join Date: Dec 2004
Location: so. cal
Posts: 1,789
Likes: 0
Received 0 Likes
on
0 Posts
you certainly dont have any clue on what you are talking about.
Toyota started with SUV's almost 70 years ago. Saying that they put all of their eggs into one basket 6 years ago just shows that you have no clue. Toyota is the biggest producer of SUV's around the world, and its Land Cruiser is the best selling real SUV in the world, for the past 55 years.
Celica has set an record on best handling FWD car in history in SCC Mag. In the same sense, MR2 set an record of best handling RWD car. For their class, both were top of the class handlers and very nimble cars.
Compared to MR2, most BMW's and MB's are buicks... in fact, all of them are buicks compared to that car. You clearly have no sense what true handling car is. There is no Porsche or Ferrari, let alone BMW or MB (LOL) that will give you handling feel of lightweight, midengined car such as Elise and
I think Clarkson said when new Miata was reviewed that you can have more fun in one lap with MRS than in day with new Miata.
So I dont know what do you considered as informed and unbiased, but you clearly have absolutly no clue about what you are talking about. I dont believe talking nonsense is considered as informative, lol.
Toyota started with SUV's almost 70 years ago. Saying that they put all of their eggs into one basket 6 years ago just shows that you have no clue. Toyota is the biggest producer of SUV's around the world, and its Land Cruiser is the best selling real SUV in the world, for the past 55 years.
Celica has set an record on best handling FWD car in history in SCC Mag. In the same sense, MR2 set an record of best handling RWD car. For their class, both were top of the class handlers and very nimble cars.
Compared to MR2, most BMW's and MB's are buicks... in fact, all of them are buicks compared to that car. You clearly have no sense what true handling car is. There is no Porsche or Ferrari, let alone BMW or MB (LOL) that will give you handling feel of lightweight, midengined car such as Elise and
I think Clarkson said when new Miata was reviewed that you can have more fun in one lap with MRS than in day with new Miata.
So I dont know what do you considered as informed and unbiased, but you clearly have absolutly no clue about what you are talking about. I dont believe talking nonsense is considered as informative, lol.
11-08-06, 07:38 PM
#15
where he was going is that he is certainly an fanboy who pretends not to be one :-P