Safety issue settlement contributed to drop in Q4 2013 earnings at Toyota

Article by Christian A., on May 10, 2014

Toyota Motor Corp.’s 5-percent drop in its fourth fiscal quarter ended March 31, 2014 was affected by $1.2 billion in payment to settle unintended acceleration. That payment, coupled with other one-time charges like costs for terminated manufacturing operations in Australia, hurt its earnings by $2.17 billion.

The carmaker actually posted a 6-percent surge in retail sales in the period to 2.58 million units and a 13-percent jump in global revenues to $63.9 billion in the three months. Toyota, however, posted a 5-percent drop in net income to JPY297 billion ($2.89 billion).

Toyota posted a 9-percent drop in fourth-quarter profits in North America to $498.1 million, despite logging a 6-percent surge in retail unit sales to 581,261 vehicles. The meltdown in earnings in its fourth fiscal quarter failed to stop Toyota from reporting a record operating and net profits.

The Japanese carmaker posted a 74-percent climb in operating profit to $22.30 billion and an 89.5-percent jump in net income to $17.73 billion in the fiscal year ended March 31. The company saw its global sales leap 5 percent to 10.13 million vehicles and its revenue rise 16 percent to $249.9 billion.

Toyota’s earning benefited from the weakened yen, which hikes the yen value of overseas earnings repatriated to Japan, rendering exports more competitive internationally.

Toyota logged $8.75 billion in foreign exchange gain in the period, thanks to the yen, which has depreciated about 20 percent against the dollar over the year, Toyota said. Toyota booked in the fourth quarter a $1.2-billion settlement with the US Department of Justice in March.

Topics: toyota, safety, earnings

If you liked the article, share on:

Comments

Recommended

Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries