Toyota Australia profits slump $137 million in 12 months

Toyota Australia has announced a net profit of $99 million for the 2016-2017 fiscal period – a $137 million slump on its previous result.

The Japanese marque, which will exit its Australian manufacturing operations on October 6, today revealed its annual result for the fiscal period ending March 31 – the end of the Japanese financial calendar.

Toyota sold 265,440 cars across its retail, Lexus luxury sub-brand and exporting businesses in 2017. On that basis, the result netted Toyota Australia an average $373 profit in every car that it sold.

The latest profit follows a $236 million profit for the 2015-2016 Japanese financial year.

Toyota said the slump in overall profit stemmed from a $131 million charge in “higher restructuring costs” associated with the shutdown of its Altona assembly line and engine casting plant.

“Due to the 2014 announcements that Toyota Australia would stop manufacturing and consolidate its corporate operations by the end of 2017, the company incurred restructuring costs of $131 million in this financial year (2015/16: $81 million),” Toyota said in a statement.

Toyota also bore the brunt of “adverse foreign exchange in export markets when compared to the prior year”. The rough translation is that Toyota’s export program culminated in 55,445 locally-built Camrys finding their way to the Middle East, well down on the previous year’s 66,605 vehicles.

"The company is well progressed in its transition to a sales and distribution company and will continue to be a strong force in the Australian market place," Toyota Australia president Dave Buttner said.

The result comes despite record sales for the Lexus sub-brand in 2016-17. The offshoot sold a relatively small 9096 vehicles, a 0.35 per cent increase on its previous best.

Production of the Australian-built Toyota Camry will cease on October 6. It will be replaced by an all-new imported model from Japan thereafter.

"Our manufacturing team members have worked diligently to ensure that our last Camry will be our best one yet," Buttner said.

"I am extremely proud of the commitment and dedication of our employees across all areas of the company. Their respective and collective contributions have continued to drive positive results in every aspect of our business."

The Toyota result comes in stark contrast to Holden’s latest financial result, which saw a considerable change in financial fortunes as the Lion brand prepares to shutter its Adelaide manufacturing operations for good.