Toyota – the world’s richest automobile manufacturer – may not be the planet’s biggest manufacturer this year, but, thanks to the loyal fans and superb marketing, the company still managed to seriously overrun its two major rivals – Volkswagen and General Motors – where it counts the most – in the profit. Toyota proudly stated a 9,1 increase in profit in the first financial quarter, April-June, to 6.16 billion dollars (that’s 756 billion Japanese Yen).
By the way, that’s huge, because those numbers are almost double of what Volkswagen AG managed to gross (3.85 billion) and about 5 times bigger than those 1.3 billion dollars of operating profit reported by General Motors in the same period.
The Impressive Results
Toyota reported this impressive gross right after VW (Volkswagen) snatched the title of the biggest global seller from the Japanese. The German manufacturer claimed they had sold 5.04 million cars in the six months through June, which is better than Toyota’s result of 5.02mil. If you ask me, that gap in 20K units doesn’t really make much difference, because every month Toyota sells more than 20K Camry sedans right here in the United States. General Motors is the third with 4.86mil sold in the first half – very impressive as well.
Toyota Holds The #1 Spot In Profits: The Financial Matters
As for the most recent quarter, the Japanese stated record-breaking operating profit and revenue for any financial quarter. Its 5.27 billion dollars of first-quarter income (up 10%) beats the world-wide record. Revenue also rose – 9.3%. This is where it gets interesting: those gigantic profit results came regardless of the deadlock in sales. Global retail volume went down a bit: minus 11K units, because of the low demand on the Asian and Japanese markets.
But, Toyota got lucky with the global financial situation. The Yen’s drop against the mighty dollar boosted the operating income by 1.43 billion dollars. Because of the currency shake-up, Toyota’s export-depending operations delivered a 30% growth in regional profit and a very impressive 14% operating-profit margin. So, that’s a huge help for the company’s impressive reports.
The Bright Future
I’m not trying to throw tons of financial info your way, it’s just that this year is shaping up to be very profitable for Toyota, and that’s great news for all the fans out there, because it (hopefully) means the company will be able to invest more hard cash into the future developments, such as the Mirai, the Sienna bad-ass minivan, the fuel-cell bus, the CH-R concept, and more.
What do you think about Toyota’s impressive profit? Any financial gurus out there? Please, do comment and let me know what you think!
See this video Toyota has regained the number one spot for worldwide sales: