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Toyota Q4 profits fall 77% due to quake

Filed under: Japan, Plants/Manufacturing, Toyota, Earnings/Financials

Toyota has announced profits of $314 million for the first three months of 2011, down 77 percent versus the automaker’s fiscal fourth quarter a year earlier. Toyota still managed a profit in spite of the March 11 earthquake that shuttered most Japanese plants, yet the $314 million is only a fourth of what analysts were expecting Toyota to make. Toyota’s sales were predictably low for the quarter, and revenue was hurt as a result.

Toyota’s profits for its fiscal fourth quarter may be disappointing, but the automaker is likely to release still worse numbers for the period through June. The automaker is still struggling through supply issues, with many plants running at only 50-percent capacity if they’re running at all. Further, the automaker says that dealers in the U.S. and China are likely to see less product in the coming months, which could lead to much lower revenue.

On a brighter note, Toyota now says that production should ramp up to 70 percent of capacity by June, up from previous estimates of July or August. That should help get Toyota back on its feet faster, which is good for everyone.

For the year, Toyota earned $5.9 billion, or nearly three times the profit of fiscal year 2009. Revenue was also up by .2 percent to $237 billion on sales of 7.3 million vehicles, up by 71,000 units compared to 2009. Sales in the U.S. were down by 67,000 units.

Hit the jump to read over the Toyota press release, which includes volume and revenue breakdowns by region.

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Toyota Q4 profits fall 77% due to quake originally appeared on Autoblog on Wed, 11 May 2011 15:31:00 EST. Please see our terms for use of feeds.

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Report: Hyundai may be piling on the sales, but dealers aren’t piling on the profits

Filed under: Car Buying, Hyundai, Earnings/Financials

2011 hyundai sonata 2.0t

2011 Hyundai Sonata 2.0T – Click above for high-res image gallery

Hyundai is holding a hot hand with its current lineup. Sales are climbing and perception of the brand is swinging strongly in the right direction. Not everyone is singing just yet, however, because Hyundai dealers are apparently lagging behind the competition in one very important area: profits.

In 2010, the industry-wide average dealer profit was 2.1 percent of total sales. Hyundai has seen its average dealer profit rise over the last few years, but according to Automotive News, it’s still below industry average; last year, Hyundai dealers earned 1.9 percent. On the flip-side, Honda dealers enjoy an average profit of nearly three percent of total sales.

One area where dealers see hefty profits is from the service bays and parts sales. Ford and Chevrolet dealerships might see 85 percent of their overhead costs taken care of by the service department. A typical Hyundai dealer may earn enough to handle 40 percent.

Hyundai dealers also have to contend with shortages of their popular models and weak used-car sales. Yet as more folks buy Hyundai vehicles, the dealers will increase the speed at which they catch up with the competition. More vehicles on the road will lead to a rise in trips to the service bay and parts sold. More used current-generation vehicles will help turn around used-car sales. Hyundai dealers know this, and 85 percent of the nearly 800-strong network is operating in the black.

Gallery: 2011 Hyundai Sonata 2.0T: First Drive

[Source: Automotive News – sub. req.]

Report: Hyundai may be piling on the sales, but dealers aren’t piling on the profits originally appeared on Autoblog on Tue, 22 Mar 2011 16:29:00 EST. Please see our terms for use of feeds.

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Rattner: GM and Chrysler will be “gushing profits”

Filed under: Government/Legal, Chrysler, GM, Earnings/Financials

Pile of money

General Motors and Chrysler LLC will lead automakers to “gushing profits” when annual U.S. sales reach 15 million vehicles, said Steven Rattner, the former head of the federal government’s auto task force, on Bloomberg TV last Friday.

“This industry has been restructured to make money,” Rattner said to Bloomberg. At 15 million vehicles a year, “they will be gushing profits.” That 15 million level is expected to be reached at mid-decade, according to predictions by companies like Toyota and GM.

A pace of 15 million vehicles is needed “simply to accommodate new drivers and the aging of the fleet,” Rattner said. “It will happen, it’s only a question of when.”

Rattner recently published a book about his experience titled: Overhaul: An Insider’s Account of the Obama Administration’s Emergency Rescue of the Auto Industry.

Rattner also this month had to agreed to a ban from the securities industry as a result of a Federal investigation into charges he directed over $1 million in illegal kickbacks to New York State pension fund officials while he was a partner in Quadrangle Group, the post he had before being recruited by the White House.

Rattner, 58, led President Barack Obama’s auto task force from February 2009 until July last year, after GM emerged from a bankruptcy backed by $50 billion in government aid.

General Motors is expected to launch its initial-public offering of stock as early as next month, while Chrysler is expected to to take itself public some time next year.

[Image: aresauburn[TM] | CC 2.0]

Rattner: GM and Chrysler will be “gushing profits” originally appeared on Autoblog on Mon, 25 Oct 2010 16:31:00 EST. Please see our terms for use of feeds.

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