Fiscal 2007 Business Results
1. Performance Overview
In the fiscal year ended March 31, 2007, Toyota posted record business results across the board. On a consolidated basis, Toyota achieved a year-on-year increase of 550,000 units in vehicle sales, to 8,524,000 vehicles; a 13.8% increase in net revenues, to ¥23,948.0 billion; a 19.2% increase in operating income, to ¥2,238.6 billion; and a 19.8% increase in net income, to ¥1,644.0 billion.
Due to various factors contributing a total of ¥720.0 billion to income, which offset expenses associated with operational expansion of ¥359.7 billion, operating income increased ¥360.3 billion and surpassed ¥2 trillion for the first time. Factors that contributed to increased income were sales efforts (¥330.0 billion), cost reductions (¥100.0 billion), and the effect of changes in currency exchange rates (¥290.0 billion).
In fiscal 2007, we were able to advance the development of technologies and products for the future while achieving a large increase in earnings, which resulted from increased vehicle sales through favorable overseas sales and cost reductions and other factors. Also, we believe that we have managed to move toward a more globally balanced earnings structure by growing earnings in Europe and Central and South America. Toyota will continue to build a rock-solid base through the improvement of technology, supply, and marketing and their supporting factors: product quality, cost, and human resources. Toyota will continue to work toward stable, long-term growth by taking in opportunities while avoiding or absorbing risks in all product segments and regions.
Mitsuo Kinoshita, Executive Vice President
Fiscal year ended March 31
2. Geographic Segment Information
In Japan, earnings were significantly higher, with a 13.0% increase in net revenues, to ¥14,815.3 billion, and a 35.4% rise in operating income, to ¥1,457.2 billion. Earnings were up due to a significant increase in vehicle exports resulting from Toyota's raising of domestic production capacity in the previous fiscal year to meet heavier overseas demand.
In North America, net revenues increased 17.5%, to ¥9,029.7 billion, while operating income decreased 9.3%, to ¥449.6 billion. Despite incurring temporary expenses related to the start-up of the Texas plant, Toyota maintained high income levels due to strong sales of such new models as the RAV4, Camry, FJ Cruiser, and Yaris.
In Europe, Toyota recorded a large rise in earnings, with increases of 29.9% in net revenues, to ¥3,542.1 billion, and 46.2% in operating income, to ¥137.3 billion. Favorable sales of core models, including the Yaris, Aygo, and RAV4, contributed to higher earnings.
In Asia, net revenues were up 8.9%, to ¥2,225.6 billion, but operating income was down 19.2%, to ¥117.6 billion. The decrease in operating income was mainly attributable to lower vehicle sales associated with downturns in certain markets, such as Indonesia and Taiwan.
In Other Regions, net revenues grew 20.0%, to ¥1,922.7 billion, and operating income was up 24.3%, to ¥83.5 billion. This increase resulted from strong sales of the IMV*2 series in Central and South America and Africa and the Camry in Oceania.
Furthermore, equity in earnings of affiliated companies was up 27.5%, to ¥209.5 billion, mainly due to the strong performances of domestic affiliated companies and joint venture companies in China.
Responsibilities include accounting related operational areas
IMV: An abbreviation of Innovative International Multipurpose Vehicle, which refers to SUVs, pickup trucks, and other multipurpose vehicles that Toyota develops and produces overseas for markets worldwide.
Fiscal year ended March 31