Most Japanese OEMs revise their FY 2013 outlooks upward
Toyota expects record high operating profit; Nissan makes downward revisions
2013/11/22
- Summary
- Consolidated sales volume planned at 24.59 million units
- Revenue plan revised upward by JPY 1.5 trillion to JPY 59 trillion
- Net profit to exceed pre-economic crisis level
- Operating profit plan increased by JPY 1.5 trillion due to exchange fluctuations
- Capital expenditure and R & D cost plans maintained at high level
Summary
At the beginning of the fiscal year ending March 2014 (FY 2013), Japanese OEMs planned record high sales volumes and profits, backed by depreciation of the yen, a strong U.S. market, and a steady Japanese market. For the first half of FY 2013 (April to September period), all of the ten OEMs increased their revenues, and every company, except for Nissan and Daihatsu, increased operating profit as well. The total sales volume of the ten OEMs increased by 0.5% year-over-year (y/y) to 11.62 million units, with an increase in revenue by 14.5% to JPY 28.6 trillion and operating profit by 56.1% to JPY 2.3 trillion.
Upon announcements of their financial results for the first half of FY 2013, each company revised the assumed exchange rate of the yen on a weaker yen basis. The automakers also revised their full-year forecasts to reflect changes in the Asian market such as Thailand and Indonesia. When we look at the ten OEMs as a whole, the consolidated sales volume decreased by 240,000 units from the original plan to 24.59 million units (up by 5.2% y/y), the revenue increased by JPY 1.5 trillion to JPY 59 trillion (up by 14.0% y/y), and the operating profit was revised upward by JPY 438 billion to JPY 4.4 trillion (up by 50.0% y/y).
Revisions to their full-year plans varied in respective companies. Fuji Heavy Industries (FHI: owner of Subaru)) and Daihatsu made upward revisions to their sales volumes, revenues, and operating profits, all of which had originally been planned to attain record highs. In particular, FHI's operating profit is estimated at JPY 278 billion, approximately 2.3 times over the previous record high established in FY 2012.
Toyota and Mazda made a large upward revision to their forecast for revenues and operating profits. From its original outlook, Toyota revised upward its revenue by JPY 1.5 trillion to JPY 25 trillion and operating profit by JPY 400 billion to JPY 2.2 trillion. The revised forecast is almost equivalent to its operating profit of JPY 2.27 trillion attained in FY 2007, before the economic crisis.
Nissan, on the other hand, revised its sales volume, revenue, and operating profit all downward. These revisions resulted from decreased sales in emerging countries such as Asia, Russia, and Brazil and recall costs incurred in the U.S. and other countries.
Japanese OEMs' FY2013 outlooks (figures in shaded cells (bold) represent record high)
| Automobile sales volume (1,000 units) |
Consolidated revenue (100 million JPY) |
Operating profit (100 million JPY) |
|||||||
|---|---|---|---|---|---|---|---|---|---|
| FY2013 plan (original) |
FY2013 outlook (Upon results announcement for the 1H) |
FY2013 plan (original) |
FY2013 outlook (Upon results announcement for the 1H) |
FY2013 plan (original) |
FY2013 outlook (Upon results announcement for the 1H) |
||||
| Toyota | 9,100 | 9,100 | Unchanged | 235,000 | 250,000 | Upward | 18,000 | 22,000 | Upward |
| Nissan | 4,889 | 4,797 | Downward | 103,700 | 101,900 | Downward | 6,100 | 4,900 | Downward |
| Honda | 4,430 | 4,430 | Unchanged | 121,000 | 121,000 | Unchanged | 7,800 | 7,800 | Unchanged |
| Suzuki | 2,803 | 2,708 | Downward | 28,000 | 28,000 | Unchanged | 1,500 | 1,700 | Upward |
| Mazda | 1,120 | 1,130 | Upward | 24,800 | 26,500 | Upward | 1,200 | 1,600 | Upward |
| Mitsubishi | 1,169 | 1,111 | Downward | 22,700 | 21,300 | Downward | 1,000 | 1,000 | Unchanged |
| Daihatsu | 1,067 | 1,099 | Upward | 18,000 | 18,500 | Upward | 1,350 | 1,370 | Upward |
| FHI | 752 | 807 | Upward | 20,500 | 23,000 | Upward | 1,800 | 2,780 | Upward |
| Isuzu | 567 | 503 | Downward | 19,200 | 18,200 | Downward | 1,800 | 1,800 | Unchanged |
| Hino | 175 | 170 | Downward | 16,200 | 16,800 | Upward | 850 | 1,000 | Upward |
| Total | 24,830 | 24,586 | 574,900 | 589,900 | 39,200 | 43,580 | |||
Source: OEMs' financial flash reports and earnings announcements.
(Note) "Total" does not include the consolidated data of Daihatsu and Hino to avoid overlaps with Toyota.
Related Reports: Toyota: FY 2014 forecasted profit is highest since Lehman Brothers crisis (Nov. 2013)
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