The Japanese automaker reported a profit of $1 billion, or 80.4 billion yen, for the fiscal second quarter ended Sept. 30. It said sales declined due to parts shortages that resulted from the earthquake and tsunami in Japan in March, while full-year results are unclear due to the flooding in Thailand, which began in July and has also hindered the delivery of parts.
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Quarterly revenue declined 5% to $58.7 billion, or 4.57 trillion yen.Toyota said it would not announce forecasts for sales, net revenue and earnings for the fiscal year ending March 31, 2012, "as more time is needed to complete an assessment of production and sales plans required by the impact of floods in Thailand." During the first half, "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," said Satoshi Ozawa, executive vice president, in a prepared statement."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," Ozawa said.The company is also troubled by the strong yen. Toyota President Akio Toyoda said earlier this week that the strong yen was reaching levels "far beyond what is tolerable," threatening to make it necessary to move production out of Japan, according to The Associated Press. The company said the unfavorable exchange rate erased $1 billion from its quarterly net income, AP said."The first quarter was challenging for Toyota due to the Japanese earthquake and tsunami," said Edmunds.com analyst Jessica Caldwell, in a prepared statement. "Market share bottomed out in May as Toyota plunged to lows that it had not seen in nearly a decade. But the company showed signs of life in the second quarter with increasing sales and market share."During the first half of the fiscal year, from April 1 through Sept. 30, net income declined 72% percent to $1 billion. First-half revenue fell 17% to $103 billion.Toyota first-half sales in Japan fell by 288,000 units to 797,000 units. In Asia, sales fell by 40,000 units to 615,000 units. In North America, sales fell by 352,000 units to 689,000 units. In Europe, sales fell by 7,000 units to 361,000 units. "The new Camry is the focal point for Toyota's continued recovery, but not even the venerable Camry nameplate guarantees the company's success in this new competitive landscape," Caldwell said. Readers Also Like: Next Year Will Get Even Uglier for U.S. Investors>>10 Best Performing Stocks in October Rally
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