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Toyota Australia records $99 million annual profit

Farewell: 2016/17 will be the last year that Toyota has a manufacturing presence in Australia, with production of the Camry set to cease in October.

$99m profit for Toyota Oz despite restructuring costs, unfavourable exchange rate

Toyota logo16 Jun 2017

By ROBBIE WALLIS

TOYOTA Australia has recorded its third consecutive year of after-tax profit, posting a $99 million gain to the end of the Japanese financial year on the back of another 12 months as the most popular manufacturer Down Under.

In the 2016/17 financial year ending March 31, the Japanese manufacturer sold 209,995 Toyota and Lexus branded vehicles, representing a 0.35 per cent increase over the previous record-setting 2015/16 year.

However, the $99m profit was well down on its previous two financial year profits, when it recorded $236m and $194m respectively.

Toyota blamed the lower profits on the restructuring costs of stopping local manufacturing and consolidating its corporate operations, which it said incurred a cost of $131m, up from $81m the previous financial year.

Unfavourable foreign exchange rates in export markets also copped some of the blame.

Locally built models exported to international markets were also down, from 64,605 units in the previous financial year to 55,445 this year.

Toyota increased its calendar year sales in 2016, remaining the best-selling manufacturer in Australia to year’s end with 209,610 sales – an increase of 1.6 per cent over the 206,236 sales from 2015.

Lexus also recorded a 3.9 per cent increase in sales in 2016 with 9027 sales, up from 8691 in 2015.

Toyota’s 2016 sales domination was capped off with the HiLux pick-up and Corolla small car being the top two best-selling cars in the country, as well as the Camry medium sedan finding itself in the top ten.

So far in 2017 it is on track to eclipse its 2016 calendar year sales, with 84,480 sales in the first five months of the year, up 5.3 per cent from 80,261 over the same period last year.

“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,” said Toyota Australia president Dave Buttner.

The last year Toyota posted a financial year loss was in 2013/14, where it took a huge hit to the tune of $437 million on the back of it announcing it will be shutting down its local manufacturing operations, which are due to come to a close in October.

Last month the Toyota Motor Corporation (TMC) also announced a global downturn in profits in the 2016/17 financial year, despite a 1.5 per cent uptick in sales.

Operating income was down 30 per cent, with Toyota blaming unfavourable exchange rates and higher expenses for a 2.8 per cent fall in net revenue.

Overall profit was 27.6 trillion yen ($A329 billion), which TMC executive vice president Osamu Nagata said would have translated in to 120 billion yen operating income if not for a 940 billion yen hit from exchange rates and a 530 billion yen jump in expenses.

Global sales of Toyota and Lexus vehicles finished on 8.97 million, up from 8.61 the previous financial year.

Adding Toyota-owned Daihatsu and Hino sales bump that figure up to 10.25 million, up from 10.09 million for the previous 12 months.

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