Toyota Motor (TM 131.29, +0.24, +0.18%) opened lower by 0.5% after
reporting its results for the first quarter of the fiscal year.
The automaker reported revenue of JPY 7.36 trillion, which was ahead of market expectations.
Consolidated vehicle sales increased 1% to 2,236,000. The growth was driven by a 3.2% increase in North American sales (to 746,000) while European sales increased 5.4% to 253,000 and Asian sales grew 8.5% to 394,000. The growth was partially offset by a 6.3% decline in Japanese sales (to 510,000) and a greater than 3.5% decline in sales to other regions (to 333,000). Operating income increased 18.9% year/year to JPY 682.6 bln while operating margin improved to 9.3% from 8.1%. The growth in operating income was driven by lower expenses, volume/model mix, and cost reduction efforts.
Operating income growth was recorded in all geographies except for North America, where operating income declined 11.8% to JPY 78.30 bln. Net income grew 7.2% to JPY 657.3 bln.
The company commented on its plans for demonstrating its mobility solutions during the Tokyo Olympics in 2020. Toyota plans to support the games with hydrogen fuel cell vehicles like the Mirai sedan and Sora, the company's fuel cell-powered bus. The company will also demonstrate level 4 autonomy solutions.
Looking ahead, the company expects that vehicle sales will total 8,900,000 during the fiscal year, down from the previous forecast for sales of 8,950,000. Net revenue guidance remained unchanged at JPY29 trillion. Operating income is expected to hit JPY 2.3 trillion, unchanged from the previous forecast.
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