Toyota Australia in the red

Toyota Australia has reported a net loss after tax of $13.2 million for the 12 months ending March 31, 2011. In a press release issued last week, company president and CEO Max Yasuda cited continuing 'tough' operating environs and a rapidly changing market for the poor result.

"The Australian dollar appreciated strongly against most major currencies, placing significant pressure on the cost competitiveness of locally made vehicles relative to imports in the Australian market, and increasing profitability pressure on exports," said Yasuda-san.

"In addition the price of raw materials, changes in Australian vehicle market demand, and increased market competition ensured that difficult conditions prevailed."

Sales revenue for the period was $8.2 billion (2010: $8.4 billion), including export sales of $1.4 billion (2010: $1.2 billion). Toyota Australia reported domestic sales totalling 217,365 (2010: 214,265) during the financial period, which included sales of fully-imported Lexus luxury models.

The result included a tax adjustment to prior years. Toyota Australia reported a profit before tax of $122 million (2010: $182.3 million) for the period.

In response to the result, Toyota Australia said it is set to implement a number of initiatives it hopes will bolster the global competitiveness of its local operations, on top of its recent product additions.

"We intensified our supplier and development programs to create a sustainable local industry," said Yasuda.

"We also undertook dealer operation continuous improvement programs; a brand program reaffirming Toyota's reputation for superior quality; and introduced new product offerings such as the Hybrid Camry, Rukus and FJ Cruiser."

The confirmation that Toyota Australia would begin manufacturing the new-generation four-cylinder engines for Camry models from late 2012 is also expected to revive the company's prospects, even as its global parent faces the challenges borne from the recent Great East Japan earthquake and tsunami.

"Securing the new engine plant is due to the hard work of our employees and suppliers to ensure we continue to transition the industry to compete in a future carbon constrained world," said Yasuda.

"We have multiple issues that must be tackled simultaneously including addressing recovering from the impact of the earthquake, severe competitive threats and maintaining global competitiveness of our manufacturing operations.

"Despite the challenges I am confident we will deliver the right product in the right place, at the right price, leading to sustainable growth for the local business," Yasuda concluded.

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