Toyota Motor Regulatory News (TYT)

9 May 2007 17:29

Toyota Motor Corporation09 May 2007 For immediate release May 9, 2007 Toyota Announces Year-End Financial Results Achieves Record High Net Revenues, Operating Income and Net Income (All consolidated financial information has been prepared in accordance with accounting principles generally accepted in the United States of America) Tokyo - TOYOTA MOTOR CORPORATION (TMC) today announced operating resultsfor the fiscal year ended March 31, 2007. On a consolidated basis, net revenues for the fiscal year ended March 31, 2007totaled 23.94 trillion yen, an increase of 13.8 percent compared to the lastfiscal year. Operating income increased 19.2 percent to 2.23 trillion yen, andincome before income taxes, minority interest and equity in earnings ofaffiliated companies increased 14.1 percent to 2.38 trillion yen. Net incomeincreased 19.8 percent to 1.64 trillion yen. All of these figures marked recordhighs. Positive contributions to operating income totaled 720.0 billion yen, consistingof 330.0 billion yen from marketing efforts, 290.0 billion yen from the positiveeffects of changes in foreign exchange rates and 100.0 billion yen from costreduction efforts. Negative factors totaled 359.7 billion yen. Commenting on the results, TMC President Katsuaki Watanabe said, "For fiscalyear 2007, Toyota posted record consolidated results across the board. Webelieve our continuous efforts to support global growth have steadilycontributed to our record net revenues, operating income and net income." TMC also announced a second-half cash dividend for the six months ended March31, 2007 of 70 yen, an increase of 15 yen per share over the same period lastfiscal year. Total dividend payout for the full year was 120 yen per share, anincrease of 30 yen year-on-year. TMC has increased its annual dividend eightconsecutive times. Watanabe added, "As a result, our dividend payout ratio will improve from 21.3%to 23.4%, marking steady progress toward our 30% target". In fiscal year 2007, Toyota's consolidated vehicle sales for the period reached8.52 million units, an increase of 550 thousand units compared to the lastfiscal year. In Japan, vehicle sales decreased by 91 thousand units over the same period lastyear, to 2.27 million units. While sales of certain existing models declined,sales of the redesigned Corolla and new models such as the Auris, Blade andLexus LS were favorable. Toyota's market share excluding mini-vehicles grew by1.5 percent compared to the same period last year, to 45.8 percent. Operatingincome from Japanese operations increased by 381.3 billion yen over the sameperiod last year, to 1.45 trillion yen, mainly due to an increase in productionvolume. In North America, vehicle sales reached 2.94 million units, an increase of 386thousand units, due to strong sales of models redesigned last year such as theRAV4 and Camry and the new models FJ Cruiser and Yaris. Operating incomedecreased by 46.0 billion yen, to 449.6 billion yen. This is mainly due totemporary expenses such as costs associated with the start up of the Texasplant, as well as the recording of valuation losses on interest rate swaps. In Europe, led by strong sales of compact models such as the Yaris and Aygo,vehicle sales increased by 201 thousand units, to 1.22 million units. Operatingincome from European operations increased by 43.4 billion yen, to 137.3 billionyen. The increase in operating income was mainly due to strong sales of coremodels. In Asia, sales decreased by 91 thousand units, to 789 thousand units, as aresult of weak market conditions mainly in Indonesia and Taiwan. Operatingincome from Asian operations decreased by 27.9 billion yen, to 117.6 billionyen. In other regions, including Central and South America, Oceania and Africa,vehicle sales increased to 1.29 million units, an increase of 145 thousandunits, due to continuing popularity of the IMV series in Central and SouthAmerica and the Camry in Oceania. Operating income in these regions increasedby 16.3 billion yen, to 83.5 billion yen. TMC estimates that the consolidated vehicle sales for the fiscal year endingMarch 31, 2008 will be 8.89 million units. TMC also announced its consolidated financial forecast for the fiscal yearending March 31, 2008. Based on an exchange rate of 115 yen to the U.S. dollarand 150 yen to the euro, TMC forecasts consolidated net revenues of 25.00trillion yen, operating income of 2.25 trillion yen and net income of 1.65trillion yen. Watanabe concluded by commenting on the outlook for profitability. "We aim toexceed last year's earnings by increasing sales volume and reducing cost, whileinvesting for future growth." (Please see attached information for details on financial results. Furtherinformation is also available on the Internet at www.toyota.co.jp) Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/3299w_-2007-5-9.pdf 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 conditions andmarket demand affecting, and the competitive environment in, the automotivemarkets in Japan, North America, Europe and other markets in which Toyotaoperates; (ii) fluctuations in currency exchange rates, particularly withrespect to the value of the Japanese yen, the U.S. dollar, the Euro, theAustralian dollar and the British pound; (iii) Toyota's ability to realizeproduction efficiencies and to implement capital expenditures at the levels andtimes planned by management; (iv) changes in the laws, regulations andgovernment policies in the markets in which Toyota operates that affect Toyota'sautomotive operations, particularly laws, regulations and policies relating totrade, environmental protection, vehicle emissions, vehicle fuel economy andvehicle safety, as well as changes in laws, regulations and government policiesthat affect Toyota's other operations, including the outcome of futurelitigation and other legal proceedings; (v) political instability in the marketsin which Toyota operates; (vi) Toyota's ability to timely develop and achievemarket acceptance 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 these and other factors which may affect Toyota's actualresults, performance, achievements or financial position is contained inToyota's annual report on Form 20-F, which is on file with the United StatesSecurities and Exchange Commission. This information is provided by RNS The company news service from the London Stock Exchange