Toyota Oz posts $221m profit

Toyota Australia has bounced back from three consecutive years of losses to post an operating profit of $220.9 million ($149.1m after tax) for the 2012/13 Japanese financial year ending on March 31.

The result is in stark contrast with the $32.6m after-tax loss Toyota announced this time last year, following its $13.2m loss in 2010/11 and the sizeable $107.9m loss it recorded in 2009/10.

It also follows the dire news from Ford on May 23, when the Blue Oval announced the end of its Australian manufacturing operations by October 2016, following accumulated losses of about $600 million over the past five years, including its worst ever operating loss of $290 million for the 2012 calendar year.

Holden, which has committed to Australian production until 2022, also filed an operating loss for 2012, announcing a $152.8 million shortfall on May 8, when it blamed market competition and a strong Australian dollar for its first year of red ink since the GFC in 2008.

Toyota’s surprise profit announcement also comes at a time when the Japanese giant, which has committed to producing a new-generation Camry in Australia into the next decade, negotiates a new round of government assistance.

It said total revenue for 2012/13 was $8.9 billion -- up almost 23 per cent on the previous year -- while domestic retail sales volume for both Toyota and Lexus was more than 20 per cent higher with 225,599 sales in 2012/13.

Toyota said the increase was due to the return to full production following the impact of the Japan earthquake and Thailand floods during the 2011/12 period.

However, Toyota’s Australian vehicle production was also up, by almost seven per cent in 2012/13 with 99,441 vehicles built compared to 92,880 the previous year.

Of the almost 100,000 vehicles Toyota made in Altona last year, a total of 69,676 (more than 70 per cent) were exported to the Middle East, New Zealand and the South Pacific Islands.

“Our products have contributed to our continued growth,” said Toyota Australia President and CEO Max Yasuda. “Last year we introduced three brand new vehicles -- the Prius c, Prius v and the 86 sports car -- along with many next-generation vehicles, all of which appealed to Australian customers.

“Our locally built Camry, Camry Hybrid and Aurion vehicles continue to sell well in both domestic and export markets. This demonstrates we are building high quality and durable vehicles that Australian motorists want to buy and enjoy, with the Camry being the best selling vehicle in its segment for 19 years in a row.

“We opened a new $330 million engine plant late last year, becoming the first Australian manufacturer to produce both petrol and hybrid engines. This has opened new export opportunities with Thailand and Malaysia and allowed us to enhance our local manufacturing capabilities.”

Toyota Australia is 15 months into a five-year plan developed in response to ongoing external challenges including the high Australian dollar, intense market competition and the high cost of materials. Yasuda said the company’s latest financial results show the company's progress is on track, but cautioned more work needed to be done,

“Our business is being radically changed to counter both internal and external pressures impacting us,” he said. “We are doing everything we can to strengthen Toyota Australia and ensure our long-term future in this country as an importer and manufacturer.”

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