Toyota reports $1.2B Profit

[a_Username]

http://finance.yahoo.com/news/Toyota...&asset=&ccode=

TOKYO (AP) -- Toyota cruised back to profit in the latest quarter as the world's top carmaker cut costs and hitched a ride on the global auto sales recovery while fighting to salvage its reputation for quality.

But the automaker's top executive and analysts alike said Toyota is still far from a full recovery while another potential blow to its image looms after U.S. federal authorities launched a fresh investigation into a steering recall.

Toyota Motor Corp. said Tuesday that January-March profit totaled 112 billion yen ($1.2 billion) compared with a 766 billion yen loss the year before.

Quarterly revenue jumped to 5.28 trillion yen ($57 billion) from 3.54 trillion yen a year earlier, when purchases of cars and other vehicles were slumping amid the global financial crisis.

Toyota, which makes the Prius hybrid and Camry sedan, is forecasting even better results for the fiscal year through March 2011, projecting annual profit to rise 48 percent to 310 billion yen ($3.3 billion).

Whether the world's biggest automaker can continue its recovery rests in part on salvaging its reputation after recalling more than 8 million cars worldwide for faulty gas pedals, a braking software glitch, faulty floor mats and other defects. The company faces more than 300 state and federal lawsuits in the U.S. alone from claims of unintended acceleration.

On Monday, the U.S. National Highway Traffic Safety Administration said it is carrying out a new investigation into Toyota to see whether it had stalled on a recall for a steering defect in 2005 in the U.S. It had carried out recalls for similar problems in Japan in 2004.

Toyota has already paid a maximum fine of $16.4 million for dallying on a recall for acceleration problems, and NHTSA could slap it with a fine of up to that amount again over the steering issue.

U.S. Transportation Secretary Ray LaHood, who is in Japan to visit Toyota and inspect high-speed trains, said Monday that additional fines may be levied against Toyota.

"There's still a long way to go before a full recovery," said author Masaaki Sato, who has written books on the history of Toyota. "It barely managed to return to the black."

Sato said the latest results show a Toyota that's weakened compared with its heyday just a few years ago when its profits were booming, its models were topping consumer surveys and annual global sales were approaching 10 million vehicles.

President Akio Toyoda, who is the grandson of the automaker's founder, said Tuesday the company was cooperating with the U.S. investigation, but did not elaborate.

Toyoda, appointed president in June last year, acknowledged that his job was similar to steering a ship in the middle of a storm. He said the ship was sailing toward what appeared to be sunny skies because employees were working together "in one spirit."

"I feel that I am now at last standing at the starting point with the latest earnings," he told reporters at Toyota's Tokyo office. "This year will mark a new beginning for Toyota."

Toyota's 29 top executives have given up their bonuses since the global fallout from the collapse of investment bank Lehman Brothers sent the automaker into the red.

Toyoda said that will continue and, of the top executives, 11 board members will also return a portion of their monthly remuneration to take responsibility for the recall mess, although he did not give figures.

The latest results appear to show Toyota has managed to contain the damage from the spate of recalls -- at least, so far.

Toyota officials said the company spent 100 billion yen on recall-related measures, and lost between 70 billion yen and 80 billion yen in sales during the year ended March 31.

They were vague about such damage for the current year, except to say Toyota estimates spending 80 billion yen for incentives to boost sales.

Sales have held up in recent months thanks to unprecedented incentives that have lured back customers in North America as well as growth from fast-growing Asian nations like China.

Toyota spent an average of $2,498 per vehicle on incentives in the U.S. in April, according to auto research Web site Edmunds.com. While that's still less than Detroit rivals, it's 53 percent more than Toyota spent in April last year.

Incentives have paid off. Toyota's U.S. sales rose 12 percent during the first four months of the year, according to Autodata Corp.

For the fiscal year through March 31, Toyota posted a 209 billion yen ($2.3 billion) profit, a dramatic reversal from a 437 billion loss in the previous fiscal year, which was the automaker's worst annual red ink since being founded in 1937.

The annual results were much better than analysts' forecasts and Toyota's cautious, internal forecast for an 80 billion yen profit.

Global sales for the year ended March 31 totaled 7.24 million vehicles, down 4 percent from the previous year. Toyota is expecting that to improve to 7.29 million for the current fiscal year.

Toyota is forecasting revenue to improve 1.3 percent to 19.2 trillion yen for the year through March 2011, from 18.95 trillion yen for the year ended March 31. That had marked a 7.7 percent decline from the previous year.

Toyota said it has figured in costs for recall-related expenses in its forecasts for the current fiscal year.

"To achieve further profit recovery, what we need to do is offer high quality, reasonably priced vehicles," said Toyoda, while stressing that tough times were likely to continue.

He said Toyota will focus on green vehicles such as hybrids and emerging markets, including China, for its next phase of growth.

Honda Motor Co. has also seen a recovery, with profit surging 96 percent to 268.4 billion yen ($2.9 billion) for the year ended March 31. Japan's No. 2 automaker is forecasting a 340 billion yen ($3.7 billion) profit for the year through March 2011. Nissan Motor Co. reports earnings Wednesday.

Toyota's stock price slipped 0.7 percent to 3,495 yen in Tokyo.

Associated Press Writer Mari Yamaguchi and Auto Writer Dan Strumpf in New York contributed to this report.

They have the ABSOLUTE BEST marketing team in the world lol. Any corporation who can go through government investigations, ~10 million vehicle recall, among multiple other hints at their failures and still manage to turn a profit it pretty impressive to say the least.

[rayhawk]

The important part there is the $1.2 BILLION of our dollars being lost to Japan. That money isn't coming back, even though people have less reason than ever to buy Toyota's in the US.

[Scrappy Doo]

Originally Posted by a_Username

http://finance.yahoo.com/news/Toyota...&asset=&ccode=



They have the ABSOLUTE BEST marketing team in the world lol. Any corporation who can go through government investigations, ~10 million vehicle recall, among multiple other hints at their failures and still manage to turn a profit it pretty impressive to say the least.

YES.

Originally Posted by rayhawk

The important part there is the $1.2 BILLION of our dollars being lost to Japan. That money isn't coming back, even though people have less reason than ever to buy Toyota's in the US.

I would never buy one, but they make nice cars. I wouldn't fault anybody for wanting one.

[LOWDOWN]

Originally Posted by rayhawk

The important part there is the $1.2 BILLION of our dollars being lost to Japan. That money isn't coming back

Like all auto manufacturers, Toyota reinvests in North America as well as elsewhere...

1) Toyota manufactures more Canadian-built vehicles sold in Canada than any other manufacturer...can you say "domestic"?

2) GM's investments in CHINA are substantial, where BUICK is considered a leading Brand...and is the main reason Pontiac, not Buick, was excised last year, because...

3) China IS the immediate "future" for GM and others. MORE vehicles will be sold in China than North America, giving a clear signal as to what an "Emerging Market" is/means...

4) It is only a matter of time before Chinese-assembled vehicles hit our shores, from various manufacturers...including GM. Those "assembled in China" products do NOT promise new manufacturing jobs in North America for us...but DO guarantee offshore investment profits...

[Mr. Wyndham]

Originally Posted by a_Username

They have the ABSOLUTE BEST marketing team in the world lol. Any corporation who can go through government investigations, ~10 million vehicle recall, among multiple other hints at their failures and still manage to turn a profit it pretty impressive to say the least.

It's disgusting. :(

[ron10]

they better make a proffit so they can pay all the fines and judgements against them.

[Georgie]

people, stop buying those appliances please and buy some real american machines

[a_Username]

Originally Posted by LOWDOWN

Like all auto manufacturers, Toyota reinvests in North America as well as elsewhere...

1) Toyota manufactures more Canadian-built vehicles sold in Canada than any other manufacturer...can you say "domestic"?

2) GM's investments in CHINA are substantial, where BUICK is considered a leading Brand...and is the main reason Pontiac, not Buick, was excised last year, because...

3) China IS the immediate "future" for GM and others. MORE vehicles will be sold in China than North America, giving a clear signal as to what an "Emerging Market" is/means...

4) It is only a matter of time before Chinese-assembled vehicles hit our shores, from various manufacturers...including GM. Those "assembled in China" products do NOT promise new manufacturing jobs in North America for us...but DO guarantee offshore investment profits...

http://www.levelfieldinstitute.org/fact_kit.html

1. GM employs nearly as many Americans as all major foreign automakers combined.
2. On average, Ford, GM, and Chrysler cars use twice as much "domestic content" in their vehicles as all foreign automakers combined.
3. About 80 cents of each research dollar spent by Ford, GM, and Chrysler is invested in the U.S.

[Muscle Master]

Originally Posted by Dragoneye

It's disgusting. :(

I'm actually disgusted by this ... people died cause they wanted to maintain a image ... Get the F*ck outta here

[2010 SSRS]

wow

[LOWDOWN]

http://www.levelfieldinstitute.org/fact_kit.html

Gee, thanks for the objective tutorial...where they're all happy and smiling about their "Parts" suppliers...including the ones who made Toyota's throttle pedal assemblies right here in good ol' North America...

Facts are facts...and the fact is, it's a World-wide business, with a World-wide network for EVERY manufacturer... Those statistics, sighted, are changing daily for, if they don't, GM/Ford/Chrysler-Fiat will cease to exist...PERIOD.

So "wave the flag" while you can... The slow-boat from China is preparing to leave its home port...and will be FILLED with "domestic" brand names...FACT. What % of North American-sourced parts do you think they'll "wear"?

[a_Username]

Originally Posted by LOWDOWN

http://www.levelfieldinstitute.org/fact_kit.html

Gee, thanks for the objective tutorial...where they're all happy and smiling about their "Parts" suppliers...including the ones who made Toyota's throttle pedal assemblies right here in good ol' North America...

Facts are facts...and the fact is, it's a World-wide business, with a World-wide network for EVERY manufacturer... Those statistics, sighted, are changing daily for, if they don't, GM/Ford/Chrysler-Fiat will cease to exist...PERIOD.

So "wave the flag" while you can... The slow-boat from China is preparing to leave its home port...and will be FILLED with "domestic" brand names...FACT. What % of North American-sourced parts do you think they'll "wear"?

The throttle pedal assembly was done according to Toyota's own specifications. It's not their job to check for safety issues, considering they relied on Toyota for actually researching the faults of the pedal.

No one can predict the future, especially not you. So even though there are multiple places around the globe where GM could open up plants, conduct research, etc., GM has decided to employ nearly as many American workers as all foreign automakers combined.

[skuttduck]

Originally Posted by a_Username

http://www.levelfieldinstitute.org/fact_kit.html

Thanks for the URL. I don't feel bad about my 2000 Camry. Never have, and never will. Built in Georgetown Kentucky, a good number of parts I see stamped all over it say "Denso, Detroit, MI" on them.

My dad is retired from GM, and never gave me any grief over the camry either. It was the first car I picked out for me, all because I drove one as a rental back in 2000. Had GM had a great car like that then, and I drove it, I would have considered it.

According to your URL they employ nearly the same number of American workers as Chrysler. Also a good amount of research money is spent here in the US by Toyota.

Oh and GM's had partnership with Toyota. Pontiac Vibe/Toyota Matrix, Toyota Corolla/Chevy Prism.

It looks like if you are considering an import vehicle, Toyota is the best of them due to their high american workforce.

[Mr. Wyndham]

Originally Posted by LOWDOWN

http://www.levelfieldinstitute.org/fact_kit.html

Gee, thanks for the objective tutorial...where they're all happy and smiling about their "Parts" suppliers...including the ones who made Toyota's throttle pedal assemblies right here in good ol' North America...

Facts are facts...and the fact is, it's a World-wide business, with a World-wide network for EVERY manufacturer... Those statistics, sighted, are changing daily for, if they don't, GM/Ford/Chrysler-Fiat will cease to exist...PERIOD.

So "wave the flag" while you can... The slow-boat from China is preparing to leave its home port...and will be FILLED with "domestic" brand names...FACT. What % of North American-sourced parts do you think they'll "wear"?

You certainly never fail to argue this side of the issue on the site....absolutely facinating............