10th May 2006 17:27
Toyota Motor Corporation10 May 2006 For immediate release May 10, 2006 Toyota Reports Record Year-End 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 (U.S. GAAP). Tokyo - TOYOTA MOTOR CORPORATION (TMC) announced today operating resultsfor the fiscal year ended March 31, 2006. On a consolidated basis, net revenues for the twelve months ended March 31,2006, increased 13.4 percent year-on-year to 21.03 trillion yen. Operatingincome reached 1.87 trillion yen, an increase of 206 billion yen, or 12.3percent, over the previous fiscal year. Net income increased 17.2 percent to1.37 trillion yen, representing the third consecutive year in which net incomeexceeded one trillion yen. All of these figures marked record highs. Positive contributions to operating income included 300.0 billion yen from thepositive effects of changes in exchange rates, 240.0 billion yen from marketingefforts and 130.0 billion yen from cost reduction efforts. These gains offsetthe negative effects of an increase in expenses of 307.3 billion yen and effectof special factors of 156.5 billion yen. Commenting on the results, TMC President Katsuaki Watanabe said, "Earningstrended upwards in the latter half of the fiscal year, resulting in positiveyear-on-year growth for the entire year. Although the effects of foreigncurrency exchange rates were contributing factors, Toyota's performancedemonstrated the strength of our company's ongoing operational efforts." TMC also announced a second-half cash dividend for the six months ended March31, 2006 of 55 yen, an increase of 15 yen per share compared with thecorresponding period of the previous fiscal year. This means total dividendpayout for the full year will be 90 yen per share, an increase of 25 yenyear-on-year, and that TMC will have increased its dividend for sevenconsecutive terms. Regarding shareholder return policy, Watanabe added, "As for dividend payout, wehave been aiming to steadily increase the payout ratio to 30% on a consolidatedbasis, and we plan to propose, at the general shareholders' meeting, a one-yearshare buy back program of up to 30 million shares or 200 billion yen." In fiscal year 2006, Toyota's consolidated vehicle sales increased to 7.974million units. In Japan, while new models such as the Ractis, Vitz and Belta were well-receivedby customers, sales of existing models including the ist, Wish and Crowndecreased amid weak market demand. Consolidated vehicle sales decreased by 17thousand vehicles to 2.364 million vehicles. Toyota's market share excludingmini-vehicles for the twelve months ended March 31, 2006 was 44.3 percent,exceeding 40 percent for the eighth consecutive year. Sales in North America reached 2.556 million vehicles, an increase of 285thousand vehicles, mainly due to steady sales of new models such as the Avalonand Tacoma and of other popular models including the Prius and those in theScion series. In Europe, the newly introduced Aygo contributed to a sales increase of 44thousand vehicles to 1.023 million vehicles. Sales in Asia increased by 47 thousand vehicles, to 880 thousand vehicles,mainly due to strong sales of IMV (Innovative International Multi-purposeVehicle) models. In other regions including Africa, Oceania and South and Central America, salesimproved to reach 1.151 million vehicles, an increase of 207 thousand units. Thestartup of IMV production in Argentina, South Africa, etc., contributed to thesales increase. TMC also announced its consolidated financial forecast for the fiscal yearending March 31, 2007. Based on an exchange rate of 110 yen to the U.S. dollarand 135 yen to the euro, TMC forecasts consolidated net revenues of 22.3trillion yen, operating income of 1.90 trillion yen and net income of 1.31trillion yen. TMC estimates that consolidated vehicle sales for the fiscal year ending March31, 2007 will be 8.450 million vehicles. Watanabe concluded by commenting on the outlook for profitability. "Ourbusiness environment will remain severe, with a significant increase in rawmaterial prices and competition intensifying. However, we wish to achieveresults that exceed our latest financial results while continuing investment forfuture growth." (Please see the attached information for details on the financial results.Further information is also available on the Internet at www.toyota.co.jp) 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 theseand other factors which may affect Toyota's actual results, performance,achievements or financial position is contained in Toyota's annual report onForm 20-F, which is on file with the United States Securities and ExchangeCommission. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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