FY2011 outlooks of Japanese OEMs and influence of Thailand flooding

Toyota and Honda drop their full-year forecasts

2011/11/29

Summary

 Domestic production of Japanese OEMs stayed at about 40% that of the previous year in March and April due to the Great East Japan Earthquake in March 2011. Then, the production gradually recovered almost to normal levels in summer. Each OEM planned to start boosting production in autumn. Due to the influence of flooding in Thailand, all local plants of Japanese OEMs that operate in Thailand, halted operations starting in October (some of them resumed operations in mid November). In addition, outside Thailand, the auto-parts supply network is disrupted, which is why Toyota and Honda have been reducing production at some of their plants.

 Due to the influence of the flooding in Thailand, Toyota and Honda dropped their FY2011 business outlooks in the earnings announcements of the first half of FY2011. Compared to the forecasts in the earnings announcements of the first quarter FY2011, eight Japanese OEMs except Toyota and Honda revised their unit-sales outlooks upward by 5.6% year-on-year to 11.401 million units. They revised their revenue outlooks downward to 21.8 trillion yen (up 2.4% year-on-year), but their operating profit forecasts upward to 924 billion JPY (down 8.8% year-on-year)at an assumed exchange rate of 77.9 yen (up by about 2.5 yen) to the US dollar (the assumed exchange rate for the second half is 76.8 yen).

 First half-year results of FY2011 of ten Japanese OEMs including Toyota and Honda are negatively affected by the Great East Japan Earthquake: the unit sales were 9.01 million (down 11.9% year-on-year), revenues were 20.4 trillion JPY (down 13.2% year-on-year), and operating profit was 492 billion JPY (down 60.6% year-on-year).

 

Overviews of Japanese OEMs' FY2011 outlooks and the first half business results

Four-wheeler
sales volume
(1,000 units)
Consolidated revenues
(100 million yen)
Operating profit
(100 million yen)
Yen to dollar
(yen)
FY2010
business
results
FY2011FY2010
business
results
FY2011FY2010
business
results
FY2011FY2011
Full
year
outlook
First
half
results
Full
year
outlook
First
half
results
Full
year
outlook
First
half
results
Full
year
outlook
First
half
results
Toyota 7,308 - 3,026 189,937 - 80,159 4,682 - (326) - 80
Nissan 3,888 4,411 2,012 87,731 94,500 43,674 5,375 5,100 3,097 79.9 79.8
Honda 3,512 - 1,319 89,368 - 36,005 5,697 - 750 - 79
Suzuki 2,642 2,719 1,205 26,082 26,100 12,262 1,069 1,100 647 77 80
Mazda 1,100 1,060 470 23,257 21,600 9,592 238 0 (216) 78 80
Mitsubishi 1,098 1,094 530 18,285 18,200 9,075 403 500 342 78 80
Daihatsu 893 922 404 15,594 15,700 7,113 1,034 950 420 76 80
FHI 657 645 266 15,806 14,800 6,550 841 300 188 78 80
Isuzu 408 422 182 14,155 14,300 6,581 882 940 438 78 81
Hino 108 128 56 12,427 13,200 5,757 289 350 149 78 80
Ten OEMs' Total 20,613 9,010 464,621 203,898 19,187 4,920 77.9 80.0
Source: OEMs' financial flash reports and earnings announcement documents
(Note) 1. In the earnings announcements of the first half of FY2011, Toyota and Honda changed their full-year FY2011 forecasts to "undecided," saying that they are unable to reasonably estimate the influence of the slowdown of production due to the flooding in Thailand.
2. The total of the yen-dollar exchange rates shows the average of the ten OEMs.