By Maximilian Clarke
Toyota has published their full year results, showing a dramatic plunge in profits from 323bn yen (£2.7bn) to a 32bn yen loss (£263m).
Total revenue dropped 17.2% to 8,000tn yen (£65bn).
The world’s biggest vehicle manufacturer incurred total disruption to its supply chain following Japan’s devastating earthquake and tsunami, and even further disruptions in the wake of Thailand’s flooding.
“In Japan and North America, vehicle sales decreased severely compared to the same period last fiscal year due to the large impact of the Great East Japan Earthquake,” explains the group’s Executive Vice President, Satoshi Ozawa. “However, in Asia, despite a negative impact from the earthquake, we increased vehicle sales above the same period last fiscal year due to expanding sales in India, Indonesia and Thailand.”
Given the extent of the disruption, which resulted in lowered and even halted production in Toyota plants across the globe, Toyota’s ability to restore production has been commended.
“The revised forecast will not come as a surprise to Toyota, but the company has shown a great deal of tenacity in recovering from shocks in the past, and will most likely do so again. Indeed, operations in North America have already returned to pre-Thai flood levels, with dealer stock increasing by around 30,000 in November,” commented Ali Al-Saffar, Automotive Industry Analyst at the Economist Intelligence Unit.
“Toyota will, however, have to fight hard, not only to maintain its spot at the top of the industry, but also to stave off increasing South Korean competition–Hyundai will benefit a great deal this year from the Free Trade Agreements Korea recently signed with Europe and the US.”
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