Toyota Sales Up 16%, Earnings Rise 32%

123jump.com Staff
03 Aug, 2007
New York City

Weaker yen and steady market share rise in Asia, North America, and Europe helped Toyota to report rising earning. The worldwide sales at the company jumped 16% lifting earnings in the first quarter by 32.5%. The unit sales gained in the U.S., Europe, and Asia but fell 9% in Japan. Recent earthquake has hampered production of vehicles in Japan. Stock traded higher in Frankfurt trading in the early afternoon.

[R]7:00AM New York, 8:00PM Tokyo – Nikkei closed 1.8% lower for the week. After the close Toyota reports 32% rise in earnings on sales gain of 16%.[/R]

Nikkei 225 in Tokyo closed or 4.25 or 0.03% to 16,979.86. For the week Nikkei lost 1.81% and Topix lost 1.6%. Despite a week of widening credit problems in the U.S. markets in Asia and Europe stabilized. The yen jumped above 119 for a dollar helping export sensitive stocks.

Sumitomo Realty & Development Company jumped 4.5% after the company reported first quarter earnings gain of 54% to 30 billion yen. The net income increase at the company has tracked rising real estate values in Tokyo and other locations in Japan. Central Tokyo has seen prices gain sharply in the last one year on tight inventory supplies. Mitsui Fudosan and Mitsubishi Estates gained 1.5%. Mitsubishi Estate income jumped three times on higher condo prices in Tokyo.

Asahi Breweries, Ltd reported its first half revenue gain of 1.2% to 672.6 billion yen and ordinary earnings fall of 10.2% to 26.6 billion yen. Net income declined 5% to 13.7 billion yen from a year ago. Net income per share was reported at 29.12 yen. Net income margin for the first half declined to 2.1% from 2.2% a year ago. The company guided for the fiscal year 2007 ending in Dec 31, 2007 net revenue gain of 2.9% to 1.448 trillion yen and net income gain of 0.5% to 45 billion yen.

Furukawa Electric fell 6% after reporting earnings decline of 40% in the second quarter. The maker of plastics, metals, and optical products in the fiscal year 2006 reported net revenue of 1.1 trillion yen and net income of 30 billion yen on a net margin of 2.7%.

Kubota Corporation reported first quarter revenue increased 6.3% to 269 billion yen and net income gain of 7% to 24 billion yen. Earnings per share in the quarter were reported at 93 yen or 76 American cents per ADS. Revenue growth in the quarter declined to 6.3% from 13.7% from a year ago. The company guided for the next quarter revenue gain of 0.4% to 560 billion yen and net income decline of 16.5% to 37 billion yen. For the fiscal year ending in March 2008 the company expects to generate net revenue of 1.14 trillion yen and net income of 76 billion yen.

The stock has underperformed in the last one year compared to its peers in machinery companies in Japan and its global peers in farm and machinery equipment.

After the close of regular trading in Tokyo market, Toyota reported first quarter earnings ending June 30. The earnings in the quarter jumped 32.3% to 491.5 billion, operating income gained 31.8% and net sales increased 15.7% to 6.52 trillion yen. The consolidated vehicle sales in the quarter jumped to 2.16 million, a rise of 71,000 units or more than 3% increase from a year ago. Vehicle sales in Japan declined 43,000 to 500,000 units, in the U.S. sales increased to 15,000 to 762,000, and in Europe 25,000 to 333,000. Asian sales jumped 29,000 to 222,000 in the quarter.

The company guided for the year ending in March, 2008 total sales of 8.89 million units generating 25 trillion yen sales with operating income of 2.25 billion yen, and net income of 1.65 billion yen.

Asian markets closed higher in the region on the bank of rising indexes in New York and European trading. Shanghai led the regions gainers for the second day with a rise of 3.5% followed by a gain of 1.2% in South Korea and Taiwan, 1% rise in India and Thailand. Hong Kong added 0.4% and Australia edged a fraction higher. Philippines led the decliners in the region with a loss of 0.2% followed by fractional losses in Japan and Indonesia.