Toyota Oz lodges $123m profit

TOYOTA Australia made a net after-tax profit of $123.4 million its financial year ending March 31, the company has announced.

The 2008/09 result is well down on the record $242.2 million profit Toyota Australia posted in its previous (2007/08) fiscal year, but is almost $400 million better than the $274.4 million loss announced by Ford Australia on Friday. GM Holden is yet to reveal its 2008 financial results.

Toyota Australia’s sales revenue between April 2008 and March 2009 was $8.8 billion – down from $9.4 billion in the previous 12 months.

Including Lexus models, the company sold 229,189 vehicles in Australia in its financial year – almost 20,000 vehicles fewer than in 2007/08 (248,647).

However, export sales increased to $1.7 billion from 94,955 vehicles in the Japanese financial year, when Altona produced 130,228 Camry and Aurion vehicles for domestic and export markets, compared with 148,810 vehicles the previous year.

President and CEO Max Yasuda said Toyota Australia’s 2008/09 profit came despite the worldwide downturn in new-car sales from mid-2008.

“The headline number is misleading,” he said. “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.” Toyota continues to forecast a total of 850,000 new-vehicle sales in 2009 – well down on Australia’s first back-to-back million-plus sales years in 2007 and 2008.

“I expect local conditions will continue to be difficult for car-makers 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.

“We have intensified our supplier and dealer development programs to ensure we have a healthy and sustainable local car industry.

“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.” Mr Yasuda said the company would continue to adjust production in line with market demand in 2009, when its export business is expected to be significantly impacted.

Toyota says it is “applying all its efforts to ensure results are above breakeven” for the current financial year, ending March 31, 2010.

“There is no doubt that the outlook for (the) 2009 financial period remains challenging,” said Mr Yasuda.

“But there will be opportunities for companies that can rapidly adjust. Fortunately, Toyota, its suppliers and dealers have acted quickly, adjusting plans in line with the new economic environment.”

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