Toyota Motor Regulatory News (TYT)

8 May 2008 09:00

Toyota Motor Corporation08 May 2008 For immediate release May 8, 2008 Toyota Announces Year-End Financial Results Achieves Record 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 results for thefiscal year ended March 31, 2008. On a consolidated basis, net revenues for the fiscal year ended March 31, 2008totaled 26.29 trillion yen, an increase of 9.8 percent compared to the lastfiscal year. Operating income increased 1.4 percent to 2.27 trillion yen, andincome before income tax, minority interest and equity in earnings of affiliatedcompanies was 2.44 trillion yen. Net income increased 4.5 percent to 1.72trillion yen. All of these figures marked record results. Operating income increased by 31.7 billion yen to 2.27 trillion yen, due topositive contributions of 290.0 billion yen from marketing efforts and 120.0billion yen from cost reduction efforts, and negative factors including 48.1billion yen of valuation losses on interest rate swaps. Excluding this 48.1billion yen, operating income on a non-USGAAP basis increased substantially by79.8 billion yen to 2.34 trillion yen. Equity in earnings of affiliatedcompanies increased by 60.6 billion yen to 270.1 billion yen, due to strongresults of joint venture companies in China. Commenting on the results, TMC President Katsuaki Watanabe said, "For thisfiscal year, we posted our highest ever results in both revenue and profits.There are two key points for these results. First, our profit structure hasbecome more geographically balanced, with growing contribution fromresource-rich countries and emerging countries. We believe our growth strategyof utilizing every opportunity across the full product line-up and in allregions have shown strong results. Second, net income has steadily increased dueto the growth of operating profit from global operations and equity in earningsof affiliated companies. Growth of equity in earnings has been particularlystrong and has more than doubled over the last four years, mainly due to therapid growth of Chinese operations." TMC also announced a cash dividend for the full fiscal year of 140 yen pershare, an increase of 20 yen over the last fiscal year. Watanabe added, "As aresult, our dividend payout ratio will improve to 25.9% from 23.4% last year. Wewill aim to achieve a 30% consolidated dividend payout ratio as well as tostrive for continuous growth of dividend per share." In fiscal year 2008, Toyota's consolidated sales reached 8.91 million units, anincrease of 389 thousand units over the last fiscal year. In Japan, vehicle sales decreased by 85 thousand units over the last year, to2.19 million units. Operating income from Japanese operations was 1.44 trillionyen which was second only to the last fiscal year. Exports increased due tostrong demand mainly in resource-rich countries and emerging countries. Toyotagroup's market share including mini-vehicles reached a record level of 42.0percent due to successful launches of new models. In North America, vehicle sales reached 2.96 million units, an increase of 16thousand units. The new Camry launched in 2006 became the best-selling passengercar for six consecutive years, and sales of the Prius increased remarkably dueto additional production capacity in Japan. As a result, Toyota's market sharein the U.S. reached a record high of 16.3 percent. The dramatic decline ininterest rates in the U.S. during this fiscal year resulted in an exceptionalincrease in valuation losses on interest rate swap transactions. Operatingincome was 305.3 billion yen for this fiscal year, but on a non-USGAAP basis,excluding the valuation losses on interest rate swap transactions of 91.4billion yen, was 396.7 billion yen, despite profit decline in the financialbusiness due to a slow down in the economy. In Europe, operating income increased by 4.2 billion yen, to 141.5 billion yen.In Western Europe, sales of the Auris and Prius were strong although the marketsin general saw a sluggish growth rate. Sales in Russia and Eastern Europeshowed steady growth due to strong sales of models such as the Camry andAvensis. Toyota will continue to respond to growing local demand and furtherincrease profits. In Asia, operating income more than doubled to 256.4 billion yen over the lastfiscal year. Improved profitability in Asia has become an important driver forToyota's strong growth. Sales of models such as the IMV and Yaris were strong incountries including Indonesia and Thailand. Increase of production capacity inThailand, in order to meet strong demand for the IMV vehicles from countriesoutside of Asia, showed steady contributions. Production of the new Corollawhich started in Thailand and Taiwan this year, is expected to contribute toprofit growth in Asia. In Latin America, Oceania and Africa, operating income for this fiscal yearincreased more than ever by 60.4 billion yen, to 143.9 billion yen. Vehiclesales in all the three regions increased due to strong sales of models, such asthe Corolla in Brazil, the IMV in Argentina and the Camry in Australia, whichwere developed to satisfy local tastes. The strong brand values of Toyotacontributed to the high profitability. TMC also announced its consolidated financial forecast for the fiscal yearending March 31, 2009. Based on an exchange rate of 100 yen to the U.S. dollarand 155 yen to the euro, TMC forecasts consolidated net revenues of 25.00trillion yen, operating income of 1.60 trillion yen and net income of 1.25trillion yen. Watanabe concluded by commenting on the outlook. "We are facing a severebusiness environment. However, Toyota considers this headwind as a valuableopportunity to turn it into a more flexible and stronger company. To this end,we will aim to eliminate waste and review the process and structure of everyaspect of our operations. Through such internal reforms, we will develop humanresources and thus work to establish a company with true strength and long-termstability." (Please see attached information for details on financial results. Furtherinformation is also available on the Internet at www.toyota.co.jp) http://www.rns-pdf.londonstockexchange.com/rns/9487t_-2008-5-8.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, the Canadian dollar and the British pound; (iii) Toyota'sability to realize production efficiencies and to implement capital expendituresat the levels and times planned by management; (iv) changes in the laws,regulations and government policies in the markets in which Toyota operates thataffect Toyota's automotive operations, particularly laws, regulations andgovernment policies relating to trade, environmental protection, vehicleemissions, vehicle fuel economy and vehicle safety, as well as changes in laws,regulations and government policies that affect Toyota's other operations,including the outcome of future litigation and other legal proceedings; (v)political instability in the markets in which Toyota operates; (vi) Toyota'sability to timely develop and achieve market acceptance of new products; and(vii) fuel shortages or interruptions in transportation systems, labor strikes,work stoppages or other interruptions to, or difficulties in, the employment oflabor in the major markets where Toyota purchases materials, components andsupplies for the production of its products or 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. # # # Contact: Public Affairs Division at (03) 3817-9110/9161 This information is provided by RNS The company news service from the London Stock Exchange