{"id":136240,"date":"2019-05-08T12:57:02","date_gmt":"2019-05-08T16:57:02","guid":{"rendered":"http:\/\/www.thedetroitbureau.com\/?p=136240"},"modified":"2019-05-08T12:57:02","modified_gmt":"2019-05-08T16:57:02","slug":"toyota-earnings-fall-as-u-s-market-softens","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2019\/05\/toyota-earnings-fall-as-u-s-market-softens\/","title":{"rendered":"Toyota Earnings Fall as U.S. Market Softens"},"content":{"rendered":"
\"\"<\/a>
Akio Toyota, Toyota's chairman, said the company needed to implement changes more quickly to restore profits to acceptable levels.<\/figcaption><\/figure>\n

Toyota\u2019s full-year financial results were a mixed bag for 2019 with operating profit inching up 2.8% due to improved sales, tighter cost controls and lower incentives in the U.S. market.<\/p>\n

Operating profit increased to $21.66 billion, or 2.40 trillion yen, in the automaker\u2019s fiscal full year ended March 31, Toyota said on Wednesday. However, the money hitting the Japanese automaker\u2019s bottom line fell 25% to $16.96 billion, or 1.88 trillion yen.<\/p>\n

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News Now!<\/figcaption><\/figure>\n

The hits to the bottom line were driven lower by special losses on equity securities that compared against robust results the year before that were artificially inflated by a windfall U.S. income tax gain. Toyota\u2019s revenue increased 2.9% to $272.78 billion, or 30.23 trillion yen.<\/p>\n

The company\u2019s cost-cutting measures were a driving force behind the profits this quarter, Honda officials said during the earnings press conference.<\/p>\n

\"\"<\/a>
Toyoda said the company "difference between victory and defeat will be decided by the 'last one mile.'"<\/figcaption><\/figure>\n

(Honda takes Q4 loss, sees full-year\u00a0profits fall 42%. <\/em>Click Here<\/a><\/span>\u00a0for the story.)<\/em><\/strong><\/p>\n

\u201cUnder the banner of restrengthening TPS and refining costs, we are working to thoroughly eliminate \u2018waste, unevenness, and overburden,\u2019 not only at our production plants, but also at our offices, at our technical workplaces, and elsewhere,\u201d said Toyota Chief Akio Toyoda during the event.<\/p>\n

However, executives said that the company didn’t reach its\u00a0targets for cost reductions\u00a0this\u00a0year, and what was accomplished didn\u2019t offset the costs of improving their products. As a result, the company will continue to look for further ways to cut costs, even if that means changing its choice of stationery and pencils, they said.<\/p>\n

(<\/em>Click Here<\/a><\/span>\u00a0for\u00a0more about the new Toyota Corolla Hybrid.)<\/em><\/strong><\/p>\n

The cuts will not come at the expense of research and development thought as the automaker\u00a0raised capital\u00a0and R&D expenditure forecasts for the next fiscal year.<\/p>\n

\"\"<\/a>
Toyota officials believe it can achieve its profit margin goal of 8% by 2021 despite it being 2% now.<\/figcaption><\/figure>\n

Toyota\u2019s profits also took a hit in the U.S., currently its largest market. Toyota\u2019s sales in the U.S. fell farther than the competition last month: 4.4% versus the overall market\u2019s\u00a01.7%.\u00a0Some analysts are suggesting to offset the problem of rising inventories, Toyota may have to put cash on the hood.<\/p>\n

(Toyota set to\u00a0unleash flood of 19 new products.\u00a0<\/em>Click Here<\/a><\/span>\u00a0for the story.)<\/em><\/strong><\/p>\n

Despite the negatives, Toyota became the first publicly traded Japanese company to report annual sales of more than 30 trillion yen ($272 billion) and unveiled plans to buy back as much as 300 billion yen of its shares, the stock failed to erase losses and closed down about 1% in Tokyo trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

Toyota\u2019s full-year financial results were a mixed bag for 2019 with operating profit inching up 2.8% due to improved sales, tighter cost controls and lower incentives in the U.S. market. However, if it wants to turn those numbers around, it may need to sweeten the pot for U.S. buyers. For details, go to TheDetroitBureau.com.<\/p>\n","protected":false},"author":4389,"featured_media":136237,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5],"tags":[],"make":[111],"post-state":[],"category_old":[286,150,151,123,287,173,289,299,132,284,125,139,290,206,288],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/136240"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/4389"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=136240"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/136240\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/136237"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=136240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=136240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=136240"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=136240"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=136240"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=136240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}