FY2011 Plans of Japanese OEMs

Large-scale increase of production to start this autumn, while dollar-yen rate subject to second rev

2011/09/21

Summary


 Domestic production of Japanese OEMs stayed at about 40% of that of the previous year in March and April due to the Great East Japan Earthquake in March 2011. Fortunately, the production recovered in July to around 90% to the level of the previous year, which was boosted by the government eco-car subsidy. In short, their production capacities have come back to normal. The OEMs will increase production by 10 to 20% over the previous year starting this autumn.

 OEMs' FY2011 business forecasts were unveiled one after another starting in the middle of June after the delays due to the earthquake. In the earnings announcements of the first quarter FY2011 (announced until early August), Toyota and Honda revised their business forecasts upward. Overall FY2011 business forecasts of ten Japanese OEMs are as follows: on a year-over-year basis, the sales volume will be up by 4.5% to 21.477 million units, revenues will be up by 0.7% to 46.8 trillion yen, operating profit will be down by 23.4% to 1.47 trillion yen, at an assumed exchange rate of 80 yen to the US dollar.

 Unfortunately, the yen continued to rise after August and stayed at the upper 76 yen zone to the dollar. If the yen remains this high, each Japanese OEM will have to revise the assumed rate, which would erode their business results (Toyota revised the FY2011 initial assumption of exchange rate from 82 yen to 80 yen to the dollar in the first quarter earnings announcement).

 

Overviews of Japanese OEMs' FY2011 plans and 1Q 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
FY2011Full-
year
plan
First
quarter
results
Full-
year
plan
First
quarter
results
Full-
year
plan
First
quarter
results
Full-
year
plan
First
quarter
results
Toyota 7,308 7,600 1,221 189,937 190,000 34,410 4,682 4,500 (1,080) 80 82
Honda 3,512 3,435 547 89,368 87,000 17,146 5,697 2,700 225 80 82
Nissan 3,888 4,272 934 87,731 94,000 20,820 5,375 4,600 1,504 80 81.7
Suzuki 2,642 2,819 594 26,082 26,100 6,073 1,069 1,100 256 80 82
Mazda 1,100 1,127 186 23,257 21,900 4,081 238 200 (231) 83 82
Mitsubishi 1,045 1,173 252 18,285 19,500 4,319 403 500 122 80 82
Daihatsu 893 892 192 15,594 15,700 3,297 1,034 850 172 80 82
Fuji Heavy 657 632 118 15,806 14,800 3,004 841 300 107 81 82
Isuzu 408 419 77 14,155 14,800 2,844 882 800 144 80 82
Hino 108 128 22 12,427 13,500 2,326 289 350 46 80
Ten OEMs' total 20,560 21,477 3,929 464,621 468,100 92,697 19,187 14,700 1,047 80 82
Source: OEMs' financial brief notes and earnings announcement documents
Notes 1. The blanks signify a lack of data due to no announcement from each OEM.
2. The total of the yen-dollar exchange rates shows the average of the ten OEMs.


Big jolt over--Japanese OEMs back to normal in the summer and to increase production by 10 to 20% from the autumn

As a consequence of the Great East Japan Earthquake in March 2011, Japanese OEMs had to suspend or reduce their production. Their production has been back to normal since this summer. Overall the domestic production volume of eight passenger car OEMs dropped to 42.5% in March and 39.9% in April of that of the previous year. It has gradually recovered to 68% in May and 84.8% in June. In July, the total production was back to 90.6% of the level for the same month last year. It is close to their normal production capacities, considering the increase in production last year when there was a rush demand before the expiration of the government eco-car subsidiary.

The overall accumulated production volume of eight OEMs was up to a total of 81.7% on a year-over-year basis in the period covering April to July 2011. The domestic production reached 72.2% and the overseas production 88.2% on a year-over-year basis. Some of the eight companies which announced their full-year production plan (fiscal year basis) set a production target at even or higher by 10% over the level of the previous year. They plan to increase production by 10% or 20% starting this autumn.

Total FY2011 production volume of eight passenger car OEMs

(Unit in one - the lower shows the percentage on a year-to-year basis (%))
March (FYI) April May June July Cumulative
total in
April - July
period of
Japan Toyota 129,491 53,823 107,437 249,660 262,328 673,248
37.3 21.6 45.6 84.1 87.5 62.3
Honda 34,754 14,168 34,746 43,289 70,809 163,012
37.1 19.0 46.6 49.4 81.5 50.4
Nissan 47,590 44,193 80,036 102,390 111,790 338,409
47.6 51.3 100.8 101.9 115.3 93.2
Suzuki 41,790 58,398 64,848 75,475 88,457 287,178
39.8 68.9 73.9 77.1 91.3 78.2
Mazda 39,887 35,313 62,208 80,114 79,486 257,121
46.4 50.3 88.2 97.7 95.0 83.9
Mitsubishi 49,434 27,481 47,013 59,069 50,808 184,371
74.3 68.3 107.7 108.1 79.9 91.2
Daihatsu 28,091 20,578 41,893 59,389 52,937 174,797
42.7 37.4 85.2 97.8 95.1 79.2
Fuji Heavy 16,530 25,391 22,438 29,910 33,461 111,200
35.1 62.4 60.6 67.7 75.8 67.0
Total 387,567 279,345 460,619 699,296 750,076 2,189,336
42.5 39.9 68.0 84.8 90.6 72.2
Overseas Toyota 412,974 254,732 180,374 344,179 332,286 1,111,571
96.9 74.5 54.2 96.4 99.5 81.4
Honda 247,500 124,330 103,106 125,084 135,918 488,438
96.8 56.5 50.6 57.9 59.6 56.3
Nissan 335,114 203,831 288,878 317,441 276,890 1,087,040
133.3 81.7 125.7 125.0 118.6 112.4
Suzuki 187,583 162,434 159,591 121,703 139,690 583,418
121.8 112.2 107.1 90.7 99.9 102.8
Mazda 40,278 26,700 20,366 33,672 23,898 104,636
114.5 107.1 76.6 101.2 68.5 87.4
Mitsubishi 56,795 40,758 45,772 47,198 47,054 180,782
107.9 102.6 115.1 125.3 119.8 115.6
Daihatsu 14,751 11,452 15,104 15,640 18,761 60,957
127.1 89.5 124.6 106.6 123.7 111.3
Fuji Heavy 14,829 8,900 11,712 12,650 6,373 39,635
106.9 67.5 175.3 63.0 83.1 83.2
Total 1,309,824 833,137 824,903 1,017,567 980,870 3,656,477
109.1 79.6 82.4 95.4 95.0 88.2
Total Toyota 542,465 308,555 287,811 593,839 594,614 1,784,819
70.1 52.2 50.7 90.8 93.9 73.0
Honda 282,254 138,498 137,852 168,373 206,727 651,450
80.8 47.1 49.6 55.5 65.6 54.7
Nissan 382,704 248,024 368,914 419,831 388,680 1,425,449
109.0 77.6 119.3 118.5 117.6 108.5
Suzuki 229,373 220,832 224,439 197,178 228,147 870,596
88.6 96.2 94.8 85 96.4 93.1
Mazda 80,165 62,013 82,574 113,786 103,384 361,757
66.2 65.1 85.0 98.7 87.2 84.9
Mitsubishi 106,229 68,239 92,785 106,267 97,862 365,153
89.1 85.4 111.2 115.1 95.1 101.8
Daihatsu 42,842 32,030 56,997 75,029 71,698 235,754
55.4 47.2 93.0 99.5 101.2 85.6
Fuji Heavy 31,359 34,291 34,150 42,560 39,834 150,835
51.4 63.7 78.1 66.2 76.8 70.6
Total 1,697,391 1,112,482 1,285,522 1,716,863 1,730,946 5,845,813
80.4 64.3 76.6 90.8 93.1 81.7

Source: The table compiled from OEMs' press releases

Total FY2011 production plans of eight passenger car OEMs

(Unit in 10,000 - the lower shows the percentage on a year-to-year basis (%))
Japan Overseas Total
Toyota 314 458 772
104.5 105.5 105.1
Honda n.a. n.a. n.a.
n.a. n.a. n.a.
Nissan 115.5 345.8 461.3
107.6 112.3 111.1
Suzuki 101 203 304
101.6 107.8 105.6
Mazda 90 n.a. n.a.
103.8 n.a. n.a.
Mitsubishi n.a. n.a. n.a.
n.a. n.a. n.a.
Daihatsu 57.3 35.6 92.9
96.3 106.1 99.8
Fuji Heavy 46.3 16.7 63
100.9 101.5 101.1
"
Source: The table compiled from OEMs' press releases
NOTES: 1."Production records" and "production plans" are compiled from the data on the same basis; however, those data by Nissan and Daihatsu are compiled on a different basis as follows:
2. Nissan's Chinese/Taiwan data in the production plan are based on those in the January - December period, which is different from the period encompassing "production records."
3. Daihatsu's production records include those supplied under the OEM agreements, which are excluded from the "production plan."


Consolidated sales volume: FY2011 plan up by 4.5% to 21.477 million units, while 1Q down by 20.9% to 3.929 million units

 In FY2011, ten Japanese OEMs plan to sell 21.477 million units (consolidated sales volume basis), up by 4.5% over the previous year. Noteworthy is that Nissan plans to increase sales by 9.9% to 4.6 million units (global sales volume basis), in an attempt to have the second consecutive record sales volume since FY2010. Toyota and Honda revised their initial plans upward in the first quarter earnings announcements. Toyota initially planned to sell 7.240 million units in FY 2011-a decrease by 0.9% from previous year; however, they revised the plan upward to indicate an increase by 4.0% to 7.600 million units. Honda also initially planned to sell 3.300 million units in FY2011 down by 6.0% on a year-on-year basis; but they revised the plan upward to a decrease by 2.2% to 3.435 million units. In addition to the above OEMs' plans, Daihatsu and Fuji Heavy have a sales volume plan for FY 2011 that is lower than the FY 2010 level.

 Overall, OEMs plan their FY2011 domestic sales volume of 4.312 million units, up by 1.9% over the previous year, when the auto industry was jolted by the expiration of government subsidiary for eco cars and the Great East Japan Earthquake. Three OEMs including Honda which had a great effect of the quake and two mini-car OEMs, namely Suzuki and Daihatsu, forecast a drop in their domestic sales volume. Ten OEMs plan to increase FY2011 overseas sales volume by 5.1% to 17.165 million units in total. Of them, Nissan and Suzuki plan to increase overseas sales by around 10%.

 Consolidated sales volume in the first quarter of FY2011 was down by 20.9% to 3.929 million units from a total of ten OEMs. Their domestic sales volume was down by 31.6% to 732 K units. There was only a small decrease in the sales volumes of Nissan, Mitsubishi and Fuji Heavy Industries; this was because production at Nissan made a quick recovery, Mitsubishi has plants in western Japan, and Fuji Heavy increased the number of models to sell. Total overseas sales volume was down by 17.9% to 3.198 million units in total of the ten OEMs. Yet, Nissan, Mitsubishi and Suzuki recorded an increase in the overseas sales over the same period last year.

Ten Japanese OEMs' consolidated sales volume of four-wheelers

(1,000 units)
FY2007FY2008FY2009FY2010Initial
FY2011
forecast
FY2011
forecast in the
1Q earnings
announcement
First quarter
FY2010FY2011
Sales
volume
of four
wheelers
Toyota 8,913 7,567 7,237 7,308 7,240 7,600 1,820 1,221
Honda 3,925 3,517 3,392 3,512 3,300 3,435 899 547
Nissan 3,698 3,138 3,159 3,888 4,272 874 934
Suzuki 2,406 2,306 2,350 2,642 2,819 611 594
Mazda 1,240 1,116 963 1,100 1,127 268 186
Mitsubishi 1,337 1,011 805 1,045 1,173 240 252
Daihatsu 945 945 869 893 892 228 192
Fuji Heavy 597 555 563 657 633 632 150 118
Isuzu 509 401 288 408 419 104 77
Hino 112 99 83 108 128 25 22
Ten OEMs' total 22,624 19,611 18,757 20,560 20.983 21,477 4,966 3,929
Domestic
sales
volume
Toyota 2,188 1,945 2,163 1,913 1,930 1,980 500 292
Honda 615 556 646 582 565 565 145 91
Nissan 684 576 599 573 583 130 115
Suzuki 673 665 622 588 575 152 113
Mazda 257 220 219 206 207 54 43
Mitsubishi 214 164 170 166 189 43 39
Daihatsu 571 587 568 527 516 137 101
Fuji Heavy 209 179 171 158 164 35 31
Isuzu 74 58 42 47 49 11 8
Hino 46 35 27 29 35 6 5
Ten OEMs' total 4,914 4,363 4,632 4,233 4,312 1,070 732
Overseas
sales
volume
Toyota 6,725 5,622 5,074 5,395 5,310 5,620 1,320 929
Honda 3,310 2,961 2,746 2,930 2,735 2,870 754 456
Nissan 3,013 2,562 2,560 3,315 3,689 744 819
Suzuki 1,732 1,641 1,729 2,053 2,244 458 481
Mazda 983 896 744 894 920 214 143
Mitsubishi 1,123 847 635 879 984 197 213
Daihatsu 374 358 301 366 376 92 91
Fuji Heavy 388 377 392 499 468 115 88
Isuzu 435 343 246 361 370 93 69
Hino 66 64 56 79 93 19 17
Ten OEMs' total 17,709 15,248 14,126 16,326 17,165 3,895 3,198
Source: OEMs' financial brief notes and earnings announcement documents
NOTES: 1. Daimler's subsidiary Mitsubishi Fuso and Volvo's subsidiary UD Trucks did not disclose the business results.
2. Toyota and Honda follow the US Generally Accepted Accounting Principles. Mitsubishi represents Mitsubishi Motors. The planned consolidated sales volumes reflect the announcements made by the respective OEMs. The arrow mark "→" represents that the initial full-year forecasts and those in the first quarter of FY2011 earnings announcement are the same. The blanks represent that each OEM did not announce the data (the same applicable to the tables below).
3. Ten OEMs' total does not include the consolidated data of Daihatsu and Hino to avoid overlaps with Toyota (the same applicable to the tables below).
4. Some consolidated sales volume data include components for production.
5. The FY2011 plans of Nissan and Mazda are reference values calculated by adding to the FY2010 records an increase or decrease in the announced global sales volume plans. The global sales volumes are based on a retail basis, which include components for production and assembled vehicles at their equity method foreign affiliates.
6. Suzuki's sales volume shows the number of Suzuki brand vehicles excluding those supplied under OEM agreement. Nevertheless, its domestic sales volume includes the Chevrolet brand vehicles. The FY2010 overseas sales include some estimated values by Suzuki.
7. The FY2010 data of Mazda include 16K units arising from the 15-month business term of its overseas subsidiaries which changed the account settlement period.
8. Mitsubishi Motors has revised the method to count sold vehicles since FY 2011. The newly counted (wholesale) sales volume includes those supplied under OEM agreement. The sales volume was 228K units in the first quarter of FY2010 according to the old counting method, while it was 240K units according to the new method.
9. Daihatsu and Hino show the sales volumes of their own brand vehicles (Toyota's sales volume includes those of Daihatsu and Hino).
10. Isuzu's FY2007 data include the 15-month results of its eight overseas consolidated subsidiaries (the overseas sales volume was 385K units on a 12-month basis).

 



Revenues: Japanese OEMs plan increase by 0.7% to 46.8 trillion yen for FY2011 regardless of decrease by 20.5% to 9.3 trillion yen in the 1Q

 Ten Japanese OEMs plan FY2011 consolidated revenues of 46.8 trillion yen in total. Specifically, Nissan plans an increase in consolidated revenues by 7.1% to 9.4 trillion yen. If Nissan achieves the planned figure, Nissan will surpass Honda on revenues due to the projected revenue for Honda in the same period being 8.7 trillion yen (down by 2.6%). Mazda and Fuji Heavy Industries expect to have a decrease in revenues by 5.8% and 6.4%, respectively.

 The total revenues of ten OEMs were down by 20.5% to 9.3 trillion yen in the first quarter of FY2011. A revenue drop of more than 20% was recorded due to the earthquake, while Nissan and Mitsubishi recorded an increase in sales volume and in revenues by 1.6% and 7.0%, respectively. In contrast, Toyota, Honda and Mazda recorded a decrease in earnings by approximately 30%.

Ten Japanese OEMs' consolidated revenues

(Yen in 100 million)
FY2007FY2008FY2009FY2010Initial
FY2011
forecast
FY2011
forecast in the
1Q earnings
announcement
First quarter
FY2010FY2011
RevenuesToyota 262,892 205,296 189,509 189,937 186,000 190,000 48,718 34,410
Honda 120,028 100,112 85,792 89,368 83,000 87,000 23,615 17,146
Nissan 108,242 84,370 75,173 87,731 94,000 20,501 20,820
Suzuki 35,024 30,049 24,691 26,082 26,100 6,563 6,073
Mazda 34,758 25,359 21,639 23,257 21,900 5,780 4,081
Mitsubishi 26,821 19,736 14,456 18,285 19,500 4,037 4,319
Daihatsu 17,026 16,314 15,747 15,594 15,700 4,114 3,297
Fuji Heavy 15,723 14,458 14,287 15,806 14,800 3,703 3,004
Isuzu 19,248 14,247 10,809 14,155 14,800 3,663 2,844
Hino 13,686 10,695 10,235 12,427 13,500 2,945 2,326
Ten OEMs' total 622,738 493,626 436,356 464,621 460,100 468,100 116,580 92,697
Domestic
revenues
Toyota 61,362 54,218 57,291 53,250
Honda 15,858 14,465 15,773 15,038 3,703 2,804
Nissan 21,878 20,383 18,032 18,694 4,161 3,967
Suzuki 9,814 9,656 9,526 9,374 9,400 2,386 2,016
Mazda 8,801 6,203 5,750 5,415 5,800 1,365 1,160
Mitsubishi 4,885 3,984 3,685 3,633 824 761
Daihatsu 11,771 11,913 11,296 10,567 10,500 2,739 2,037
Fuji Heavy 5,440 5,075 5,208 4,673 4,500 1,045 988
Isuzu 6,547 5,338 4,330 4,986 5,100 1,182 974
Hino 9,246 6,944 6,754 8,455
Ten OEMs' total 134,586 119,322 119,595 115,063 24,800 14,666 12,670
Overseas
revenues
Toyota 201,530 151,078 132,218 136,687
Honda 104,171 85,647 70,019 74,330 19,912 14,342
Nissan 86,364 63,987 57,141 69,037 16,340 16,853
Suzuki 25,210 20,393 15,165 16,708 16,700 4,177 4,057
Mazda 25,957 19,156 15,889 17,842 16,100 4,415 2,921
Mitsubishi 21,936 15,752 10,771 14,652 3,213 3,558
Daihatsu 5,255 4,401 4,452 5,027 5,200 1,375 1,261
Fuji Heavy 10,284 9,383 9,079 11,132 10,300 2,658 2,016
Isuzu 12,701 8,909 6,479 9,169 9,700 2,481 1,870
Hino 4,440 3,751 3,481 3,972
Ten OEMs' total 488,153 374,304 316,761 349,557 52,800 53,195 45,617

Source: OEMs' financial brief notes and earnings announcement documents
NOTE: Domestic/overseas earnings represent earnings by location of external customers.

 



Profits: Ten OEMs' overall forecasts lower profit by 23.4% to 1.47 trillion yen for FY2011, at an assumed exchange rate of 80 yen to the US dollar

 For the FY 2011, most Japanese OEMs' plans lower profits on a year-on-year basis. Ten OEMs projected a fall in operating profit by 23.4% to 1.47 trillion yen, in current profit by 28.2% to 1.51 trillion yen, and in net profit by 22.2% to 1.06 trillion yen. Honda, in particular, forecasts a nose-dive in three profit items by more than 50%. On the other hand, Suzuki, Mitsubishi and Hino project an increase in all profit items. Mazda has also forecasted a positive net profit for the first time in four years.

 In the first quarter of FY2011, Japanese OEMs had a significant drop in profits except Mitsubishi. Toyota recorded a negative operating profit of 108.0 billion yen and a negative pretax profit of 80.5 billion yen (the net profit was a positive 1.1 billion yen). Mazda recorded in the negative for three profit items.

 Most Japanese OEMs assumed the exchange rate of 80 yen to the US dollar for FY2011 at the first quarter earnings announcement, while Mazda assumed 83 yen and Fuji Heavy 81 yen to the dollar. Toyota assumed the rate of 82 yen to the US dollar in the announcement of the initial full-year business forecast as of June 10, 2011, when the exchange rate hovered at the low level of 80 yen to the dollar. However, the yen rose further than expected to the high 70 yen zone after the middle of July. Toyota, therefore, raised their calculated rate to 80 yen to the dollar in the earnings announcement of the first quarter (August 2). The exchange rate hovered mostly at the upper 76 yen range to the dollar during August.

Ten Japanese OEMs' consolidated operating profits/current profits/net profits

(Yen in 100 million)
FY2007FY2008FY2009FY2010Initial
FY2011
forecast
FY2011
forecast in the
1Q earnings
announcement
First quarter
FY2010FY2011
Operating
profit
Toyota 22,704 (4,610) 1,475 4,682 3,000 4,500 2,116 (1,080)
Honda 9,531 1,896 3,637 5,697 2,000 2,700 2,344 225
Nissan 7,908 (1,379) 3,116 5,375 4,600 1,679 1,504
Suzuki 1,494 769 794 1,069 1,100 319 256
Mazda 1,621 (284) 95 238 200 64 (231)
Mitsubishi 1,086 39 139 403 500 (45) 122
Daihatsu 652 382 407 1,034 850 347 172
Fuji Heavy 457 (58) 274 841 300 226 107
Isuzu 1,096 217 110 882 800 238 144
Hino 459 (194) 11 289 350 87 46
Ten OEMs' total 45,897 (3,410) 9,640 19,187 12,500 14,700 6,941 1,047
Current
profit
Toyota 24,372 (5,604) 2,914 5,632 3,200 5,000 2,630 (805)
Honda 8,958 1,617 3,361 6,305 2,150 2,850 2,561 292
Nissan 7,664 (1,727) 2,077 5,378 4,410 1,550 1,477
Suzuki 1,569 797 938 1,225 1,250 306 288
Mazda 1,485 (187) 46 369 150 41 (258)
Mitsubishi 857 (149) 130 389 400 (58) 103
Daihatsu 666 395 438 1,122 920 364 201
Fuji Heavy 454 (46) 224 822 250 242 117
Isuzu 1,223 152 114 913 800 231 144
Hino 410 (304) (19) 251 310 71 38
Ten OEMs' total 46,583 (5,147) 9,804 21,033 12,610 15,110 7,503 1,358
Net profitToyota 17,179 (4,369) 2,094 4,081 2,800 3,900 1,904 11
Honda 6,000 1,370 2,684 5,340 1,950 2,300 2,724 317
Nissan 4,823 (2,337) 424 3,192 2,700 1,066 850
Suzuki 803 274 289 452 500 152 187
Mazda 918 (715) (65) (600) 10 (21) (255)
Mitsubishi 347 (549) 48 156 200 (118) 43
Daihatsu 349 221 212 526 370 199 68
Fuji Heavy 185 (699) (165) 503 350 191 285
Isuzu 760 (269) 84 516 650 124 87
Hino 222 (618) (30) (100) 120 31 (49)
Ten OEMs' total 31,015 (7,294) 5,393 13,640 9,160 10,610 6,022 1,525
Source: OEMs' financial flash reports and earnings announcement documents
NOTES: 1. The Current Profit data of Toyota and Honda shows respective pre-tax current profits as they adopt the US Generally Accepted Accounting Principles.
2. Toyota posted an operating profit of 578.2 billion yen without the impact from the earthquake for the year ended in March 2011. It estimated the negative impact on operating profit from the Great East Japan Earthquake as negative 110 billion yen. Thus, it recorded the operating profit as 468.2 billion yen for the full year ended March 2011.
3. Honda posted the loss from the great earthquake as 45.72 billion yen, of which 17.45 billion yen was allocated to the sales cost and 28.27 billion yen to sales and general administration costs in the FY2010 consolidated business results.
4. As a natural disaster loss, Nissan posted 39.605 billion yen for an extraordinary loss in the FY2010 business results, and 21.13 billion yen in the first quarter FY2011 business results, respectively.
5. Suzuki posted earthquake damage of about 5 billion yen including damaged vehicles in the earthquake as a non-operating expenditure in the FY2010 business results.
6. Mazda posted extraordinary losses of 8.5 billion yen as a loss provision for the North American business and 5.2 billion yen for the earthquake impact. In addition, considering the drop in the FY2011 profit from the initially planned level due to the earthquake, Mazda reduced a part of deferred tax assets by about 56.7 billion yen, and posted it as effects on income taxes. In the first quarter FY2011, a loss of 3.653 billion yen was posted for an extraordinary loss as a natural disaster loss.
7. As a natural disaster loss, Mitsubishi posted 2.365 billion yen for the damage from the earthquake in the FY2010 results and 630 million yen in the first quarter of FY2011.
8. As a natural disaster loss, Daihatsu posted 5.017 billion yen for an extraordinary loss in the FY2010 business results and 2.025 billion yen in the first quarter FY2011 business results.
9. As a natural disaster loss, Fuji Heavy posted 7.4 billion yen for an extraordinary loss in FY 2010 and 5.7 billion yen in the first quarter FY2011. On the other hand, it posted 26.1 billion yen earned from selling its headquarter building and the site as an extraordinary profit in the first quarter of FY2011.
10. Isuzu posted 9.03 billion yen in FY2010 and 560 million yen in the first quarter of FY2011 for earthquake losses respectively as an extraordinary loss.
11. As a natural disaster loss, Hino posted 6.15 billion yen in the FY2010 business results for an extraordinary loss, and 6.1 billion yen in the first quarter of FY2011.

Assumed exchange rate of yen to dollar by ten Japanese OEMs

(Yen)
FY2007FY2008FY2009FY2010Initial
FY2011
forecast
FY2011
forecast in the
1Q earnings
announcement
First quarter
FY2010FY2011
DollarToyota 114 101 93 86 82 80 92 82
Honda 114 101 93 86 80 92 82
Nissan 114.4 100.7 92.9 85.7 80.0 92.0 81.7
Suzuki 114 101 93 86 80 92 82
Mazda 114 101 93 86 83 92 82
Mitsubishi 115 101 92 85 80 93 82
Daihatsu 114 101 92 85 80 91 82
Fuji Heavy 116 102 93 86 81 92 82
Isuzu 115 101 91 85 80 93 82
Hino 114 101 93 86 80
Average 114.4 101.1 92.6 85.7 80.6 80.4 92.1 82.0
EuroToyota 162 144 131 113 115 116 117 117
Honda 162 142 130 114 110 112 118 118
Nissan 161.6 144.1 131.2 113.1 115.0 117.0 117.4
Suzuki 160 144 131 113 110 118 117
Mazda 162 144 131 113 113 117 117
Mitsubishi 162 144 130 113 115 119 118
Daihatsu 161 152 131 110 110 115 117
Fuji Heavy 147 132 114 115 121 117
Isuzu
Hino
Average 161.5 145.1 130.9 112.9 113.3 117.8 117.3

NOTE: If OEMs announced a number of assumed exchange rates, their respective exchange rates used for sales are included in the table above.

 



Positive and negative effects on operating profits: losses from exchange fluctuation and increase in expenditures surpass increases in earnings and those from cost reduction

 Ten OEMs' forecasts of their respective FY2011 operating profits and their FY2010 records caused a difference of negative 448.7 billion yen. Positive effects on the profits are 228.9 billion yen from a fluctuation in sales and 152.7 billion yen from cost reduction. Dampers for the operating profits are 430.8 billion yen from exchange fluctuation and 330.1 billion yen increases in overhead, R&D costs, etc.

Factors to cause increase/decrease in operating profits of Japanese OEMs

(Yen in 100 million)
FY2007FY2008FY2009FY2010Initial
FY2011
forecast
FY2011
forecast
in the 1Q
earnings
announce-
ment
First
quarter
FY2011
ToyotaOperating profit 22,704 (4,610) 1,475 4,682 3,000 4,500 (1,080)
Increase/decrease in operating profits 317 (27,314) 6,085 3,207 (1,682) (182) (3,196)
Operation/sales 2,900 (14,800) (3,700) 4,900 (500) 1,300 (2,800)
Cost improvements 1,200 0 5,200 1,800 1,000 1,200 200
Financial business 2,700 (700) (500)
Impact from exchange fluctuation 0 (7,600) (3,200) (2,900) (1,000) (1,600) (500)
Miscellaneous expenditures (3,302) (4,791) 4,700 (300) (482) (582) 100
(thereof:) R&D cost (681) 548 1,787 (250) (50)
(thereof:) Facility cost (997) (904) 378 1,200 200
(thereof:) Labor cost (602) 1,088 627 (400) (500)
(thereof:) Others (1,022) (5,523) 1,908 (850) 450
Others (481) (122) 385 (293) (196)
HondaOperating profit 9,531 1,896 3,637 5,697 2,000 2,700 225
Increase/decrease in operating profits 1,012 (7,634) 1,741 2,060 (3,697) (2,997) (2,118)
Difference from sales fluctuation/ mix 1,700 (2,477) (2,465) 3,222 (1,192) (872) (1,348)
Impact from exchange fluctuation 376 (2,695) (1,675) (1,376) (910) (710) (225)
Effects of cost reduction etc. 115 (1,825) 674 1,533 (710) (590) (831)
R&D cost (361) 247 998 (242) (675) (675) 80
Sales administration cost (818) (883) 4,209 (620) (210) (150) 205
Impact from the earthquake (457)
Nissan
(Note 2)
Operating profit 7,908 (1,379) 3,116 5,375 4,600 1,504
Increase/decrease in operating profits 353 (9,287) 4,495 2,259 (775) (175)
Impact from exchange fluctuation (162) (2,230) (1,625) (1,475) (1,350) (550)
Sales volume/mix 750 (5,252) 269 4,331 1,900 20
Sales cost, etc. 882 (1,342) 2,154 1,058 450 126
Sales finance 295 136
Reserve for loss of leasing (918) 1,417
R&D cost (15) 645 (185) (620) 15
Sales cost (381) 271 (1,915) (1,120) 78
Others (721) 455 1,364 150 (35)
SuzukiOperating profit 1,494 769 794 1,069 1,100 256
Increase/decrease in operating profits 165 (725) 25 275 31 (63)
Fluctuation in sales/mix, etc. 408 (1,422) (696) 253 (89) (125)
Impact from exchange fluctuation 225 (707) (469) (283) (280) (59)
Cost reduction 284 201 172 355 280 13
Depreciation (117) 204 (6) 34 180 55
R&D cost (166) (63) 62 47 (60) (2)
Miscellaneous expenditures (469) 1,062 962 (131) 55
MazdaOperating profit 1,621 (284) 95 238 200 (231)
Increase/decrease in operating profits 36 (1,905) 379 143 (38) (295)
Volume/vehicle type mix 80 (865) (606) 357 (142) (317)
Impact from exchange fluctuation 234 (1,020) (765) (437) (36) (31)
Improving product appeal (133) (190)
Cost reduction 158 440 680 112 126 (4)
Raw material market conditions (440)
For sales costs (42) 65 227 (56) (50) 7
Others (261) 105 843 167 64 50
MitsubishiOperating profit 1,086 39 139 403 500 122
Increase/decrease in operating profits 684 (1,047) 100 264 97 167
Volume/vehicle type mix 543 (720) (856) 533 260 182
Impact from exchange fluctuation 146 (761) (418) (342) (90) (35)
Cost reduction etc. 154 365 544 211 220 30
Impact from rising raw materials costs (317)
Others 335 578 (86) (263) (24)
For sales cost (64) 174 252 (51) (30) 14
US sales finance business (95) (123)
DaihatsuOperating profit 652 381 407 1,034 850 172
Increase/decrease in operating profits 109 (271) 26 627 (184) (175)
Sales/vehicle type mix 190 113 (258) 224 (40) (191)
Impact from exchange fluctuation 39 (80) (79) (17) (9) (4)
Cost reduction 106 105 123 150 80 22
Quality improvement cost (7)
Sales related costs (37) 79 29
Miscellaneous expenditures (227) (408) 239 313 (294) (30)
Fuji HeavyOperating profit 457 (58) 274 841 300 107
Increase/decrease in operating profits (22) (515) 332 567 (541) (120)
Sales mix disparity (8) 3 87 831 (188) (190)
Impact from exchange fluctuation 10 (435) (304) (356) (220) (83)
Cost reduction, etc. 70 (32) 260 89 (119) (2)
Testing and research costs (13) 92 57 (57) (51) (17)
Miscellaneous expenditures (81) (143) 232 61 37 172
IsuzuOperating profit 1,096 217 110 882 800 144
Increase/decrease in operating profits 26 (879) (107) 772 (82) (94)
Change in sales/difference in product mix (113) (800) (807) 705 120 (123)
Impact from exchange fluctuation 34 (156) (23) (24) (22) (15)
Changes in economic conditions (82) (273) 181 (98) (140) (6)
Streamlining 172 190 130 177 80 12
Compressing costs etc. 412 12 (120) 38
Improvement of profitability etc. 76 344
Costs for facilities, R&D (137) (108)
Changed accounting period of subsidiaries 76 (76)
HinoOperating profit 459 (194) 11 289 350 46
Increase/decrease in operating profits 92 (653) 205 278 61 (41)
Impact on sales 82 (330) 231 337 320 (78)
Changes in business climate (36) (366) (70) (111) (260) (41)
Improvement of costs 190 163 199 187 200 22
Changes in costs (144) (120) 190 (135) (199) 56
Fluctuation in sales volume (345)
Ten OEMs'
total
Operating profit 45,897 (3,410) 9,640 19,187 14,700 1,047
Increase/decrease in operating profits 2,571 (49,306) 13,050 9,547 (4,487) (5,894)
Changes in sales 6,260 (26,333) (8,774) 15,132 2,289 (4,701)
Impact from exchange fluctuation 863 (15,604) (8,479) (7,193) (4,308) (1,498)
Cost reduction etc. 3,111 (2,416) 10,226 5,347 1,527 (418)
Overhead, R&D costs, etc. (5,849) (4,348) 12,615 (3,449) (3,301) 707
Others (1,814) (605) 7,462 (290) (694) 16
Source: OEMs' financial flash reports and earnings announcement documents
NOTES: 1. The current profit data of Toyota and Honda represent pre-tax current profits as they adopt the US Generally Accepted Accounting Principles.
2. Purchase costs etc. of Nissan include costs for raw materials and energy.
3. Suzuki's fluctuation in sales/mix include influence from raw materials cost.
4. Decrease in Mitsubishi's Miscellaneous expenditures includes depreciation.
5. Fuji Heavy's cost reduction etc. includes influences from rising raw material costs.

 



OEMs plan to increase capital investment by 31%; R&D costs of more than two trillion yen for the first time in three years

 The FY2011 capital investment plans of ten OEMs will be up by 31.3% over the previous year to 2.056 trillion yen in total, which will be a two-year increase in the capital investment. Ten OEMs project a depreciation of 1.426 trillion yen in total. The capital investment will exceed the depreciation for the first time in three years. Plans for R&D costs will be increased by 9.7% to 2.153 trillion yen. It is likely to exceed two trillion yen for the first time in three years.

Ten Japanese OEMs' consolidated capital investment, depreciation and R&D costs

(Yen in 100 million)
FY2007FY2008FY2009FY2010Initial
FY2011
forecast
FY2011
forecast in the
1Q earnings
announcement
First quarter
FY2010FY2011
Capital
investment
Toyota 14,802 13,025 5,790 6,423 7,200 926 1,164
Honda 6,540 5,991 3,297 3,113 4,300 428 593
Nissan 4,289 3,836 2,736 3,120 4,100 426 389
Suzuki 2,436 2,162 1,312 1,303 2,100 397 327
Mazda 755 818 298 447 800 64 155
Mitsubishi 567 719 471 525 990 73 84
Daihatsu 1,117 767 367 406 650 60 71
Fuji Heavy 563 580 561 431 600 82 140
Isuzu 506 667 257 294 470 84 66
Hino 437 584 285 300 600
Ten OEMs' total 30,458 27,798 14,722 15,656 20,560  
Depreciation
cost
Toyota 10,424 10,721 10,320 8,123 7,600 1,975 1,689
Honda 4,173 4,082 3,666 3,252 3,150 825 713
Nissan 3,709 4,212 3,633 3,721 894 932
Suzuki 1,616 1,412 1,418 1,384 1,200 305 250
Mazda 665 752 764 716 700 182 174
Mitsubishi 719 790 690 627 670 158 137
Daihatsu 665 837 729 637 570 151 141
Fuji Heavy 655 651 571 498 550 116 116
Isuzu 415 396 395 364 390 92 91
Hino 442 475 452 457 470
Ten OEMs' total 22,376 23,016 21,457 18,685    
R&D costToyota 9,588 9,040 7,253 7,303 7,600 1,829 1,865
Honda 5,879 5,631 4,633 4,875 5,550 1,182 1,102
Nissan 4,575 4,555 3,855 3,993 4,600 889 865
Suzuki 1,087 1,150 1,088 1,041 1,100 218 220
Mazda 1,144 960 852 910 950 232 252
Mitsubishi 776 640 444 494 640 119 133
Daihatsu 442 442 437 382 400 99 81
Fuji Heavy 520 428 372 429 480 89 160
Isuzu 603 677 552 586 610 131 134
Hino 395 409 381 411 415
Ten OEMs' total 24,172 23,081 19,049 19,631 21,530  

Source: OEMs' financial flash reports and earnings announcement documents
NOTE: Nissan's capital investment and depreciation have included the figures related to the Finance Lease since FY2008 (those until FY2007 were not included). The FY2007 investment is 516.4 billion yen according to the same FY2008 standards.

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