Toyota Australia posts $137m profit

TOYOTA Australia has recorded an after-tax profit of $137 million during its final financial year of local manufacturing, despite incurring significant costs as part of its manufacturing shut down.

 

The profit for the Japanese financial year ending on March 31, 2018, is up $38 million on the previous financial year.

 

As part of this year’s results, Toyota Australia incurred costs of $147 million stemming from its 2014 decision to close its Altona, Victoria, manufacturing operation in October last year.

 

This is on top of $131 million in costs the previous financial year as part of its transition from manufacturer to full-line importer.

 

The latest profit was made on total sales of 229,258 vehicles by Toyota and its luxury arm, Lexus, in Australia in 2017-18.

 

A total of 42,857 Toyota vehicles were built in that period, made up of 40,596 Camrys and 2261 Aurions, with 25,791 exported to markets such as New Zealand and the Middle East.

 

Toyota Australia president Matthew Callachor praised the company’s employees, adding that focus had shifted to emerging technologies and future regulations.

 

“This successful result is a testament to the dedication and commitment of the entire team here at Toyota Australia, both past and present,” he said.

 

“We have now completed our transition to a sales, marketing and distribution business, and the fact that we have been able to increase both local sales and market share shows that our organisation is moving from strength to strength.

 

“Our focus has turned to the changes facing the automotive industry. We are cognisant of the impact that possible emissions regulations, autonomous vehicles and connected technology will have on the whole industry.

 

“Our financial results, in conjunction with our strong dealer network and our employees’ capability, will enable Toyota to successfully navigate the challenges of the future.”

 

Toyota was the market leader for the 2017 calendar year, clocking up 216,566 units, a 3.3 per cent increase over its 2016 result.

 

The HiLux pick-up was the top-selling model in Australia last year, with 47,093 sold, while the Corolla was third with 37,353 and the Camry was ninth on 23,620.

 

Toyota started importing the new-generation Camry from Japan in November last year in four-cylinder petrol, hybrid and V6 petrol guises.

 

Sales of the new Japanese-built Camry are well down on the numbers the locally built model achieved, with sales sliding by 28 per cent so far this year.

 

Toyota Australia has previously stated that it expected a sales dip compared with the Australia-made Camry that was propped up by generous retail discounting and large fleet purchases.

 

As previously reported, Toyota Motor Corporation in Japan returned to profitability in the last financial year, recording a 2.5 trillion yen ($A30 billion) after-tax profit.

 

The other two manufacturers that shut their factories in the last two years, Ford and Holden, recorded after-tax profits of $27 million and $156.8 million respectively in the last financial year.

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