Toyota Motor Regulatory News (TYT)

4 Aug 2006 13:02

Toyota Motor Corporation04 August 2006 For immediate release August 4, 2006 Toyota Announces First Quarter Operating Results Net Revenues and Earnings Mark New Record for the first Quarter (All consolidated financial information has been prepared in accordance with accounting principles generally accepted in the United States) Tokyo - TOYOTA MOTOR CORPORATION (TMC) today announced operating resultsfor the first quarter ended June 30, 2006. On a consolidated basis, net revenues for the first quarter totaled 5.64trillion yen, an increase of 13.2 percent compared to the same period lastfiscal year. Operating income increased 26.5 percent to 512.4 billion yen,while income before income taxes, minority interest and equity in earnings ofaffiliated companies was 554.6 billion yen. Net income increased 39.2 percentto 371.5 billion yen. Positive contributions to operating income totaled 180.0 billion yen, consistingof 100.0 billion yen from the positive effects of foreign exchange rates, 60.0billion yen from marketing efforts and 20.0 billion yen from cost reductionefforts. Negative factors totaled 72.7 billion yen, including an increase in R&D expenses of 27.5 billion yen. Commenting on the results, TMC Senior Managing Director Takeshi Suzuki said, "Weposted substantial increases in both revenues and profits, achieving recordlevels. We believe this is a result of company-wide efforts to implement theplans that we set at the beginning of this fiscal year." Consolidated vehicle sales for the first quarter came to 2.09 million units, anincrease of 143 thousand units compared with the previous period of the lastfiscal year. In Japan, unit sales decreased by 7 thousand units compared with the firstquarter of the last fiscal year, to 543 thousand units. Toyota's market shareexcluding mini-vehicles grew by 1.5 percent compared with the first quarter ofthe last fiscal year, to 46.5 percent. Operating income from Japaneseoperations increased by 104.6 billion yen from the same period last year, to293.0 billion yen, due mainly to higher Japanese production volume in responseto strong overseas demand. Sales in North America reached 747 thousand units, an increase of 106 thousandunits due to the strong popularity of such models as the redesigned RAV4 and thenew Yaris and FJ Cruiser. In North America, operating income increased by 2.3billion yen, to 140.1 billion yen, as a result of strong sales of these andother models, which offset start-up costs at the Texas plant which is scheduledto open in the near future. In Europe, despite weak market conditions, unit sales increased by 52 thousandunits to 308 thousand vehicles. Operating income from European operationsincreased by 19.8 billion yen, to 36.5 billion yen, as a result of strong salesprimarily of remodeled vehicles such as the Yaris, RAV4 and Lexus IS. Profitsin Europe have been improving steadily. Sales in Asia decreased by 36 thousand units to 193 thousand units, mainly dueto sales decreases in Indonesia and Taiwan. Operating income from Asianoperations decreased by 9.8 billion yen, to 30.0 billion yen, as a result ofdecreases in both production volume and vehicle units sold. Exports of IMVvehicles from Asia, which began last year, have been progressing well. In other regions including Africa, Oceania and South and Central America, salesincreased to 300 thousand vehicles, an increase of 28 thousand units. Operatingincome in these regions decreased by 1.1 billion yen, to 15.9 billion yen. TMC estimates that the projected consolidated vehicle sales for the fiscal yearending March 31, 2007 will be 8.45 million units, which is unchanged from TMC'sinitial projections announced in May 2006. Consolidated revenues and earningsprojections for the full year also remain unchanged, with consolidated netrevenues of 22.3 trillion yen, operating income of 1.90 trillion yen and netincome of 1.31 trillion yen. Commenting on the outlook for consolidated profit for the fiscal year endingMarch 31, 2007, Suzuki said, "We are currently on track overall for the annualplan so far, with the exception of foreign exchange rates assumptions. Despitefluctuations in raw material prices, we aim to achieve our forecast of eachactivity that we planned at the beginning of this fiscal year." (Please see attached information for details on financial results. Furtherinformation is also available on the Internet at www.toyota.co.jp) Cautionary Statement with Respect to Forward-Looking Statements This release contains forward-looking statements that reflect Toyota's plans andexpectations. These forward-looking statements are not guarantees of futureperformance and involve known and unknown risks, uncertainties and other factorsthat may cause Toyota's actual results, performance, achievements or financialposition to be materially different from any future results, performance,achievements or financial position expressed or implied by these forward-lookingstatements. These factors include: (i) changes in economic conditionsaffecting, and the competitive environment in, the automotive markets in Japan,North America, Europe and other markets in which Toyota operates; (ii)fluctuations in currency exchange rates, particularly with respect to the valueof the Japanese yen, the U.S. dollar, the euro, the Australian dollar and theBritish pound; (iii) Toyota's ability to realize production efficiencies and toimplement capital expenditures at the levels and times planned by management;(iv) changes in the laws, regulations and government policies affecting Toyota'sautomotive operations, particularly laws, regulations and policies relating toenvironmental protection, vehicle emissions, vehicle fuel economy and vehiclesafety, as well as changes in laws, regulations and government policiesaffecting Toyota's other operations, including the outcome of future litigationand other legal proceedings; (v) political instability in the markets in whichToyota operates; (vi) Toyota's ability to timely develop and achieve marketacceptance of new products; and (vii) fuel shortages or interruptions intransportation systems, labor strikes, work stoppages or other interruptions to,or difficulties in, the employment of labor in the major markets where Toyotapurchases materials, components and supplies for the production of its productsor where its products are produced, distributed or sold. A discussion of theseand other factors which may affect Toyota's actual results, performance,achievements or financial position is contained in Toyota's annual report onForm 20-F, which is on file with the United States Securities and ExchangeCommission. -------------------------- This information is provided by RNS The company news service from the London Stock Exchange