Finance Report
Economic Performance
The operating environment continued to be tough for the local car manufacturing industry, with a rapidly changing market environment in 2010/11.
Toyota Australia reported a net loss after tax of $13.2 million for the 12 months to 31 March 2011. 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. In addition the price of raw materials, changes in Australian vehicle market demand, and increased market competition meant that difficult conditions prevailed.
| 2007/08 | 2008/09 | 2009/10 | 2010/11 | |
|---|---|---|---|---|
| Net Profit After Tax | $242.2 million | $123.3 million | -$107.9 million | -$13.2 million |
| Sales Revenue | $9.4 billion | $8.8 billion | $8.4 billion | $8.2 billion |
| Export Sales | $1.8 billion | $1.7 billion | $1.2 billion | $1.4 billion |
| Capital Expenditure | $99.8 million | $119 million | $82 million | $259 million |
| Domestic Retail Sales Volume (including Lexus models) | 248,690 vehicles | 229,189 vehicles | 214,645 vehicles | 217,365 vehicles |
Sales Revenue
Sales revenue for the period was $8.2 billion (compared to $8.4 billion in the previous year). The financial results include a tax adjustment to prior years. Toyota Australia reported a profit before tax of $121.9 million (2010: $182.3 million) for the period.
Export Sales
Export sales totalled $1.4 billion in the financial period, up from $1.2 billion in 2009/10. Toyota Australia is the country's largest vehicle exporter and exported 79,979 Camry and Aurion vehicles in 2010/11 to more than 20 countries including the Middle East, New Zealand and the Pacific Islands.
Domestic Sales Volume
Domestic retail sales volume (including Lexus) was 217,365 in 2010/11, up from 214,645 in 2009/10.
In response to market environment challenges, Toyota Australia implemented a wide range of initiatives to support the achievement of global competitiveness for its operations.
The company intensified its supplier and development programmes to create a sustainable local industry. It also undertook dealer operation continuous improvement programmes, a brand programme reaffirming Toyota's reputation for superior quality and introduced new product offerings such as the Camry, Rukus and FJ Cruiser.
A key highlight for the industry and for Toyota during the financial period was the confirmation that the company will begin full manufacturing of new-generation four cylinder engines for Camry and Camry Hybrid sedans from late 2012.
Challenges to be addressed include the impact from the Great East Japan Earthquake, competitive threats and maintaining the global competitiveness of the company's manufacturing operations.
President and CEO, Max Yasuda, said "Despite these 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."
Great East Japan Earthquake
The Great East Japan Earthquake and tsunami in March 2011 caused significant fatalities and injuries as well as massive infrastructure damage (including damage to nuclear power stations) mainly in Miyagi prefecture and the neighbouring Fukushima, Aomori, Iwate and Ibaraki prefectures.
Toyota Australia's first priority was to contact all employees in Japan to establish their safety and their families' safety. All employees were found to be safe and accounted for.
The earthquake affected Toyota Motor Corporation's production plants as well as the operations of its parts suppliers.
Following the disaster, Toyota Australia adjusted vehicle production at its manufacturing plant in Altona to manage available parts supply. The plant operated on a reduced schedule but continued to provide employment for its 3,300 Altona-based employees.
Vehicle production at the manufacturing plant was expected to return to pre-earthquake levels by late 2011. However, due to the efforts of everyone involved, particularly suppliers, Toyota Australia was able to resume vehicle production to pre-earthquake levels by June 2011.
Mr Yasuda praised the efforts undertaken in helping the company resume full production earlier than anticipated, saying: "The past two months have been challenging for Toyota Australia employees, dealers and suppliers, but their flexibility and support has been critical in helping the company get back on its feet quickly."