Japanese OEMs lower FY2012 outlook due to sluggish sales in China

Global sales still expected to exceed previous record highs set in FY2007

2012/12/14

Summary

 FY2012 was the year in which Japanese OEMs planned to make a comeback from the damages caused by the Great East Japan Earthquake and the flood in Thailand. Their aggressive plans were backed up by the revived subsidy program in Japan and by the expansion of their overseas sales. The ten Japanese OEMs' performances were doing well, as expected, during the first half (April to September period) of FY2012 with an increase in consolidated sales volume by 29.1% y/y to 11.62 million units and revenue by 22.4% to 25 trillion JPY for that same period. The operating profit increased threefold from the previous year to 1.5 trillion JPY.

 However, the companies made downward revisions to their full-year forecasts upon their announcements of their financial statements for the first half of FY2012 due to decreased sales in China originating from a territorial dispute between the two countries, as well as from a shrink in the market in Europe. Companies except for Toyota, Isuzu and Hino made downward revisions to their consolidated sales volumes. The total sales volume of the ten OEMs decreased by 520K units from the original plan to 23.74 million units (an increase of 15.3% from FY2011). However, the total sales volume of 23.74 million units exceeds the 22.62 million units from FY2007 before the economic crisis, marking a record high. This is due to the expansion of the Asian market (including China) from FY2007, as well as the recovery of the Japanese and the U.S. markets.

 Suzuki, Daihatsu, Isuzu, and Hino maintained the revenue estimates for FY2012, but the rest of the companies made downward revisions resulting in an 1.9 trillion JPY decrease to the ten OEMs' consolidated revenue to approximately 51 trillion JPY (up by 12.8% y/y).

 The estimated operating profits for the respective companies varied with Nissan and Honda announcing over 100 billion JPY downward revisions and Mazda announcing a downward adjustment as well. Toyota, Mitsubishi, Fuji Heavy Industries (FHI), Isuzu, and Hino, on the other hand, all made upward revisions to their operating profits. Suzuki and Daihatsu maintained their original plans. The total operating profit of the ten OEMs decreased by 152 billion JPY from the original estimate, to 2,578 billion JPY (an increase of 81.8% from last year).

 

Japanese OEMs' FY2012 outlooks (figures in shaded cells (bold) represent record high)

Automobile sales volume(1,000 units)Consolidated revenue(100 million yen)Operating profit(100 million yen)
FY2012 plan(original)FY2012 outlook(Upon resultsannouncementfor the 1H)FY2012 plan(original)FY2012 outlook(Upon resultsannouncementfor the 1H)FY2012 plan(original)FY2012 outlook(Upon resultsannouncementfor the 1H)
Toyota 8,700 8,750 Upward 220,000 213,000 Downward 10,000 10,500 Upward
Nissan 4,920 4,672 Downward 103,000 98,150 Downward 7,000 5,750 Downward
Honda 4,300 4,120 Downward 103,000 98,000 Downward 6,200 5,200 Downward
Suzuki 2,811 2,744 Downward 26,000 26,000 Unchanged 1,200 1,200 Unchanged
Mazda 1,090 1,075 Downward 22,000 21,700 Downward 300 250 Downward
Mitsubishi 1,208 1,128 Downward 19,800 18,300 Downward 700 800 Upward
Daihatsu 1,001 998 Downward 16,700 16,700 Unchanged 1,200 1,200 Unchanged
FHI 721 714 Downward 18,600 18,400 Downward 670 820 Upward
Isuzu 506 532 Upward 16,300 16,300 Unchanged 1,230 1,260 Upward
Hino 153 154 Upward 14,800 14,800 Unchanged 470 530 Upward
Total 24,256 23,735 528,700 509,850 27,300 25,780

Source: OEMs' financial flash reports and earnings announcement documents (Note) "Total" does not include the consolidated data of Daihatsu and Hino to avoid overlaps with Toyota.

 

Related Reports:FY2012 plans for Japanese OEMs: aim for record high sales of 24 million units (June, 2012) Japanese OEMs produce 4.3M vehicles, up 14.9% globally in Jan.-Feb. 2012 YoY (April, 2012) Japanese new vehicle sales: eco-car incentives to salvage 2012 sales to 5M units (Feb. 2012)



Consolidated sales volume for FY2012 estimate marks record high of 23.74 million units despite 520K-unit decrease from original plan

 The FY2012 outlook of consolidated sales volume of the ten Japanese OEMs decreased approximately 520K units from the original plan to 23.74 million units (an increase of 15.3% from FY2011), due to declined sales in the Chinese and European markets. The revised volume of 23.74 million units, however, still exceeds the record high 22.62 million units (FY2007) by 5%.

 Looking at the companies, respectively, OEMs except for Toyota, Isuzu, and Hino made downward revisions to their plans. Nissan decreased its sales estimate by 270K units from its global sales volume of 5.35 million units to 5.08 million units, but still aims to attain a record high for its third consecutive year (the plan was reduced from 1.35 million units to 1,175K units for the Chinese market). In addition to Nissan, companies including those reduced plans, like Honda, Suzuki, Daihatsu, FHI, Isuzu, and Hino are planning to attain a record high sales volume.

 Due to increased sales in Japan, North America, and the Middle East, Toyota sold 4.52 million units during the first half-year period exceeding 180K units over its original plan. However, it increased its full-year sales volume outlook only by 50K units from its original plan to 8.75 million units.

 The ten automakers' consolidated sales volume for automobiles increased by 29.1% y/y to 11.62 million units during the first half of FY2012 from recovery from the reduced production caused by the Great East Japan Earthquake and from the effect of the Eco-car Subsidy Program. Honda and Toyota especially made a big improvement with an increase of 53.1% and 49.2% from last year, respectively.

Ten Japanese OEMs' consolidated unit sales of automobiles

(1,000 units)
FY
2007
FY
2008
FY
2009
FY
2010
FY
2011
FY2012
(outlook)
First half Second half
FY
2011
FY
2012
FY
2011
FY
2012
(Plan
-ned)
Original Upon results
announce
-ment
for the 1H
Sales
volumes
of auto
-mobiles
sold
Toyota 8,913 7,567 7,237 7,308 7,352 8,700 8,750 3,026 4,516 4,326 4,234
Nissan 3,698 3,138 3,159 3,888 4,456 4,920 4,672 2,012 2,197 2,444 2,475
Honda 3,925 3,517 3,392 3,512 3,108 4,300 4,120 1,303 1,995 1,805 2,125
Suzuki 2,406 2,306 2,350 2,643 2,560 2,811 2,744 1,206 1,275 1,354 1,469
Mazda 1,240 1,116 963 1,100 1,016 1,090 1,075 470 502 546 573
Mitsubishi 1,337 1,011 805 1,098 1,072 1,208 1,128 530 536 542 592
Daihatsu 945 945 869 893 940 1,001 998 404 509 536 489
FHI 597 555 563 657 640 721 714 266 348 374 366
Isuzu 509 401 288 408 381 506 532 182 248 199 284
Hino 112 99 83 113 129 153 154 56 76 72 78
Total for
10 OEMs
22,624 19,611 18,757 20,614 20,585 24,256 23,735 8,995 11,617 11,590 12,118
Japan Toyota 2,188 1,945 2,163 1,913 2,071 2,200 2,250 797 1,192 1,274 1,058
Nissan 684 576 599 573 639 673 663 277 294 362 369
Honda 615 556 646 582 588 710 710 225 354 363 356
Suzuki 673 665 622 588 596 639 639 261 341 335 298
Mazda 257 220 219 206 226 237 227 109 115 117 112
Mitsubishi 214 164 170 199 184 203 193 83 88 101 105
Daihatsu 571 587 568 527 563 605 605 230 319 333 286
FHI 209 179 171 158 172 145 160 73 72 99 88
Isuzu 74 58 42 47 54 58 61 21 30 33 31
Hino 46 35 27 30 37 39 40 15 20 22 20
Total for
10 OEMs
4,914 4,363 4,632 4,266 4,530 4,865 4,903 1,846 2,486 2,684 2,417
Overseas Toyota 6,725 5,622 5,074 5,395 5,281 6,500 6,500 2,229 3,324 3,052 3,176
Nissan 3,013 2,562 2,560 3,315 3,817 4,247 4,009 1,735 1,903 2,082 2,106
Honda 3,310 2,961 2,746 2,930 2,520 3,590 3,410 1,078 1,641 1,442 1,769
Suzuki 1,732 1,641 1,729 2,053 1,964 2,172 2,105 945 934 1,019 1,171
Mazda 983 896 744 894 790 853 848 361 387 429 461
Mitsubishi 1,123 847 635 899 888 1,005 935 447 448 441 487
Daihatsu 374 358 301 366 377 396 393 174 191 203 202
FHI 388 377 392 499 468 575 554 193 276 275 278
Isuzu 435 343 246 361 327 448 471 161 218 166 253
Hino 66 64 56 83 92 114 114 41 56 51 58
Total for
10 OEMs
17,709 15,248 14,126 16,346 16,055 19,390 18,832 7,149 9,131 8,906 9,701
Source: OEMs' financial flash reports and earnings announcement documents
(Note) 1. Daimler's subsidiary, Mitsubishi Fuso, and Volvo's subsidiary, UD Trucks, did not disclose their business results.
2. Toyota and Honda follow the U.S. Generally Accepted Accounting Principles. Mitsubishi represents Mitsubishi Motors.
3. The ten OEMs' total does not include the consolidated data of Daihatsu and Hino to avoid overlaps with Toyota. Consolidated unit sales include components for production.
4. The planned figures for the second half of FY2012 are calculated values based on the ten companies' FY2012 full-year plans and the first half-year performances.
5. The FY2012 plan of Nissan is reference values. It is calculated by adding to the FY2011 records the 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 Nissan's equity method foreign affiliates
6. Honda has changed its range of disclosed items for its unit sales from FY2012. Before FY2012, the disclosed unit sales were a sum of "(A) units sold by Honda and its consolidated subsidiaries" and "(B) sales of parts for local production at Honda's subsidiaries accounted for under the equity method of accounting," but from FY2012, only (A) is disclosed as its "consolidated unit sales." The sum of (A) and the "unit sales made by Honda's subsidiaries accounted for under the equity method of accounting" is now disclosed as the "Honda group unit sales." Honda's figure in the table above shows "Honda group unit sales," starting from the FY2011.
7. Suzuki's sales volume shows the number of Suzuki brand vehicles, excluding those supplied under the OEM agreement. The FY2012 overseas sales include some estimated values by Suzuki.
8. 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.
9. Mitsubishi Motors has revised its method to count sold vehicles from FY2011. The newly counted (wholesale) sales volume includes those supplied under the OEM agreement. The new method is applied from FY2010 in the above table. According to the old counting method, sales volume in FY2010 is 1,045K units (166K in Japan and 879K overseas).
10. Daihatsu and Hino show the sales volumes of their own brand vehicles (Toyota's sales volume includes those of Daihatsu and Hino).
11. 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).

Seven Japanese OEMs' sales volume by region

(1,000 units)
Toyota Nissan Honda Suzuki Mazda Mitsubishi FHI Total for
7 OEMs
Japan FY2007 2,188 721 615 673 256 219 209 4,881
FY2008 1,945 612 556 665 219 168 179 4,344
FY2009 2,163 630 646 622 221 171 171 4,624
FY2010 1,913 600 582 588 206 164 158 4,211
FY2011 2,071 655 588 596 206 152 172 4,440
FY2012 planned
(original)
2,200 690 710 639 225 167 145 4,776
FY2012 outlook
(Upon results
announcement for the 1H)
2,250 680 710 639 214 156 160 4,809
North
America
FY2007 2,958 1,352 1,850 n.a. 406 160 210 n.a.
FY2008 2,212 1,133 1,496 85 347 119 207 5,599
FY2009 2,098 1,067 1,297 41 307 88 250 5,148
FY2010 2,031 1,245 1,458 33 342 94 307 5,510
FY2011 1,872 1,404 1,323 32 372 106 309 5,418
FY2012 planned
(original)
2,350 1,520 1,740 33 390 93 356 6,482
FY2012 outlook
(Upon results
announcement for the 1H)
2,400 1,495 1,740 33 383 86 382 6,519
Europe FY2007 1,284 636 391 n.a. 327 341 86 n.a.
FY2008 1,062 530 350 302 322 272 78 2,916
FY2009 858 517 249 281 239 169 39 2,352
FY2010 796 607 198 244 212 218 60 2,335
FY2011 798 713 158 223 183 218 55 2,348
FY2012 planned
(original)
860 720 230 227 185 221 82 2,525
FY2012 outlook
(Upon results
announcement for the 1H)
790 680 205 227 182 200 66 2,350
Asia &
others
FY2007 2,483 1,061 1,069 n.a. 374 640 92 n.a.
FY2008 2,348 1,136 1,115 1,253 373 507 92 6,824
FY2009 2,118 1,301 1,200 1,407 426 532 103 7,087
FY2010 2,568 1,733 1,274 1,778 513 511 132 8,509
FY2011 2,611 2,073 1,039 1,710 486 525 104 8,548
FY2012 planned
(original)
3,290 2,420 1,620 1,912 540 607 137 10,526
FY2012 outlook
(Upon results
announcement for the 1H)
3,310 2,225 1,465 1,845 476 602 105 9,978
Total FY2007 8,913 3,770 3,925 2,406 1,363 1,360 597 22,334
FY2008 7,567 3,411 3,517 2,305 1,261 1,066 555 19,682
FY2009 7,237 3,515 3,392 2,350 1,193 960 563 19,210
FY2010 7,308 4,185 3,512 2,643 1,273 987 657 20,565
FY2011 7,352 4,845 3,108 2,560 1,247 1,001 640 20,753
FY2012 planned
(original)
8,700 5,350 4,300 2,811 1,340 1,088 721 24,310
FY2012 outlook
(Upon results
announcement for the 1H)
8,750 5,080 4,120 2,744 1,255 1,044 714 23,707
Source: OEMs' financial flash reports and earnings announcement documents
(Note) 1. Figures for Toyota, Honda, and Fuji Heavy Industries are based on consolidated sales volumes.
2. Nissan's figures show global sales volume (which includes vehicles assembled by its affiliates that are applicable to the equity method, using shipped parts for the production).
3. Honda's figures before FY2011 are based on unit sales. From FY2011, the figures are based on Honda group's unit sales.
4. Mazda's figures show global sales volume (representing all retailed volume under the Mazda brand).
5. The figures for Mitsubishi Motors are based on retail sales (a new counting method was introduced from the FY2010 performance).

 

 



Revenue planned to increase by 12.8% from last year to 51 trillion JPY, revised downward by 1.9 trillion JPY

 The FY2012 planned consolidated revenue of the ten Japanese OEMs was 51 trillion JPY, up 12.8% year-on-year. Companies except for Suzuki, Daihatsu, Isuzu, and Hino all made downward revisions from their original plans resulting in a total of 1.9 trillion JPY decrease. Major Japanese OEMs, Toyota, Nissan, and Honda, made a big downward adjustment of 700 billion JPY, 485 billion JPY, and 500 billion JPY, respectively. Of the companies which made downward revisions to their estimates, FHI and Hino are expecting to achieve a record high for their revenues as well.

 The consolidated revenue of the ten OEMs for the first half of FY2012 increased by 22.4% to 25 trillion JPY from last year's same period. The automakers with a large increase rate are FHI (37.1%), Toyota (36.1%), and Honda (30.7%). FHI's revenue increase rate (37.1%) notably exceeded its sales volume (30.8%). The increase resulted from the improved product mix with the withdrawal from the mini vehicle manufacturing business, and contract manufacturing of the well-selling Toyota 86 and Subaru BRZ sports cars co-developed with Toyota.

Ten Japanese OEMs' consolidated revenues

(JPY in 100 million)
(Reference)
FY2007
FY2010 FY2011 FY2012 (outlook) First half Second half
  FY2011 FY2012 FY2011 FY2012
(Planned)
Original Upon financial
announce
-ment
for 1H
Revenue Toyota 262,892 189,937 185,837 220,000 213,000 80,159 109,083 105,678 103,917
Nissan 108,242 87,731 94,090 103,000 98,150 43,674 45,468 50,416 52,682
Honda 120,028 89,368 79,481 103,000 98,000 36,005 47,072 43,476 50,928
Suzuki 35,024 26,082 25,122 26,000 26,000 12,262 12,268 12,860 13,732
Mazda 34,758 23,257 20,331 22,000 21,700 9,592 10,235 10,739 11,465
Mitsubishi 26,821 18,285 18,073 19,800 18,300 9,075 8,600 8,998 9,700
Daihatsu 17,026 15,594 16,313 16,700 16,700 7,113 8,627 9,201 8,073
FHI 15,723 15,806 15,171 18,600 18,400 6,550 8,980 8,621 9,420
Isuzu 19,248 14,155 14,001 16,300 16,300 6,581 7,801 7,420 8,499
Hino 13,686 12,427 13,146 14,800 14,800 5,757 7,454 7,389 7,346
Total for
10 OEMs
622,738 464,621 452,105 528,700 509,850 203,898 249,507 248,208 260,343
Revenue
in Japan
Toyota 61,362 53,250 56,621 56,621
Nissan 21,878 18,694 19,466 8,778 9,273 10,689
Honda 15,858 15,038 15,179 6,271 8,496 8,908
Suzuki 9,814 9,374 9,868 10,000 10,000 4,487 5,151 5,381 4,849
Mazda 8,801 5,415 5,602 5,580 5,800 2,702 2,945 2,900 2,855
Mitsubishi 4,885 3,633 3,571 4,000 3,600 1,634 1,549 1,937 2,051
Daihatsu 11,771 10,567 11,303 11,300 4,792 6,511  
FHI 5,440 4,673 4,985 6,278 6,570 2,245 3,098 2,740 3,472
Isuzu 6,547 4,986 5,584 5,900 5,900 2,342 2,794 3,242 3,106
Hino 9,246 8,455 8,926
Total for
10 OEMs
134,586 115,063 120,877
Revenue
outside of Japan
Toyota 201,530 136,687 129,215 129,215
Nissan 86,364 69,037 74,624 34,896 36,195 39,727
Honda 104,171 74,330 64,302 29,734 38,576 34,568
Suzuki 25,210 16,708 15,254 16,000 16,000 7,775 7,117 7,479 8,883
Mazda 25,957 17,842 14,729 16,420 15,900 6,890 7,290 7,839 8,610
Mitsubishi 21,936 14,652 14,502 15,800 14,700 7,441 7,051 7,061 7,649
Daihatsu 5,255 5,027 5,011 5,400 2,321 2,690  
FHI 10,284 11,132 10,186 12,322 11,830 4,305 5,883 5,881 5,947
Isuzu 12,701 9,170 8,417 10,400 10,400 4,240 5,007 4,177 5,393
Hino 4,440 3,972 4,220
Total for
10 OEMs
488,153 349,558 331,228

Source: OEMs' financial flash reports and earnings announcement documents
(Note) Japan/overseas revenues represent revenues by the external customer location.

 

 



Profit revised downward to operating profit of 2.6 trillion JPY with the assumed exchange rate of 79.2 yen to the US dollar

 The outlook of total profit of the ten OEMs was revised downward with a 152 billion JPY decrease from the original plan to 2,578 billion JPY for their operating profit (an 81.8% increase from last year). On a company basis, Nissan and Honda announced over 100 billion JPY downward revisions and Mazda also announced its downward revision. Toyota, Mitsubishi, FHI, Isuzu, and Hino, on the other hand, all made upward revisions to their operating profits. Suzuki and Daihatsu maintained their original estimates. Three OEMs, Daihatsu, Isuzu, and Hino, expect to achieve record high revenues.

 Moreover, the planned combined ordinary profit for these companies decreased by 176 billion JPY to 2,691 billion JPY (up 77% from the previous year), and the net profit decreased by 138 billion JPY to 1,726 billion JPY (up 84.4% from the previous year). Mazda is expecting to end its fiscal year with a profit for the first time in five years.

 The profit for the Japanese manufacturers, with the exception of Nissan and Mitsubishi, either increased or made a turnaround from last year's decline, caused by the Great East Japan Earthquake, during the first half of FY2012. When looking at the ten OEMs as a whole, every profit related item showed a threefold increase from the previous year, with 1,466.5 billion JPY for the operating profit, 1,578.8 billion JPY for the ordinary profit, and 1,100.6 billion JPY for the net profit.

 The full-year average assumed exchange rate of the Japanese automakers was 79.2 JPY to the U.S. dollar (at the time of fiscal announcement for the first half-year), which is about the same as the rate of 79.3 JPY used for account settling for the first half-year. Nissan, who originally assumed a lower exchange rate of the yen at 82 JPY to the U.S. dollar, revised the full-year rate to 79.7 JPY making alignment with the other companies.

 

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

(JPY in 100 million)
(Reference)
FY2007
FY2010 FY2011 FY2012 (outlook) First half Second half
  FY2011 FY2012 FY2011 FY2012
(Planned)
Original Upon financial
announce
-ment
for 1H
Operating profit Toyota 22,704 4,682 3,556 10,000 10,500 (326) 6,937 3,882 3,563
Nissan 7,908 5,375 5,458 7,000 5,750 3,097 2,870 2,361 2,880
Honda 9,531 5,697 2,313 6,200 5,200 750 2,768 1,563 2,432
Suzuki 1,494 1,069 1,193 1,200 1,200 647 661 546 539
Mazda 1,621 238 (387) 300 250 (216) 115 (171) 135
Mitsubishi 1,086 403 637 700 800 342 308 295 492
Daihatsu 652 1,034 1,155 1,200 1,200 420 737 735 463
FHI 457 841 440 670 820 188 433 252 387
Isuzu 1,096 882 974 1,230 1,260 438 573 536 687
Hino 459 289 375 470 530 149 297 226 233
Total for
10 OEMs
45,897 19,187 14,184 27,300 25,780 4,920 14,665 9,264 11,115
Current profit Toyota 24,372 5,632 4,328 11,600 11,800 (14) 7,945 4,342 3,855
Nissan 7,664 5,378 5,351 6,800 5,450 2,954 2,756 2,397 2,694
Honda 8,958 6,305 2,574 6,350 5,400 1,058 3,010 1,516 2,390
Suzuki 1,569 1,225 1,306 1,350 1,350 676 700 630 650
Mazda 1,485 369 (368) 150 150 (306) 4 (62) 146
Mitsubishi 857 389 609 520 620 233 316 376 304
Daihatsu 666 1,122 1,282 1,300 1,300 466 789 816 511
FHI 454 822 373 630 810 216 453 157 357
Isuzu 1,223 913 1,029 1,270 1,330 451 604 578 726
Hino 410 251 346 450 500 124 281 222 219
Total for
10 OEMs
46,583 21,033 15,202 28,670 26,910 5,268 15,788 9,934 11,122
Net profit Toyota 17,179 4,081 2,835 7,600 7,800 815 5,482 2,020 2,318
Nissan 4,823 3,192 3,414 4,000 3,200 1,834 1,783 1,580 1,417
Honda 6,000 5,340 2,114 4,700 3,750 922 2,139 1,192 1,611
Suzuki 803 452 539 700 700 320 419 219 281
Mazda 918 (600) (1,077) 100 100 (399) 57 (678) 43
Mitsubishi 347 156 239 250 130 106 301 133 (171)
Daihatsu 349 526 651 700 700 213 444 438 256
FHI 185 503 385 480 670 328 404 57 266
Isuzu 760 516 913 810 910 337 421 576 489
Hino 222 (100) 163 280 330 6 185 157 145
Total for
10 OEMs
31,015 13,640 9,362 18,640 17,260 4,263 11,006 5,099 6,254
Source: OEMs' financial flash reports and earnings announcement documents
(Note) 1. The Current Profit data of Toyota and Honda shows respective pre-tax current profits since they adopt the U.S. Generally Accepted Accounting Principles.
2. Honda revised its method of depreciation for its tangible fixed assets (excluding operating lease assets) from a fixed percentage method to a straight-line method from FY2012. As a result, the net profit for the first half of FY2012 increased by 13,716 million JPY from the previous method.

Exchange rate of yen to dollar and euro by ten Japanese OEMs

(Yen)
FY2007 FY2010 FY2011 FY2012 outlook First half
  FY2011 FY2012
Original Upon financial
announcement
for 1H
US Dollar Toyota 114 86 79 80 79 80 79
Nissan 114.4 85.7 79.1 82.0 79.7 79.8 79.4
Honda 114 86 79 80 80 79 79
Suzuki 114 86 79 75 77 80 79
Mazda 114 86 79 80 80 80 79
Mitsubishi 115 85 79 78 79 80 79
Daihatsu 114 85 80 80 79 80 79
FHI 116 86 79 80 79 80 80
Isuzu 115 85 79 80 80 81 80
Hino 114 86 79 80 79 80 80
Average 114.4 85.7 79.1 79.5 79.2 80.0 79.3
Euro Toyota 162 113 109 105 100 114 101
Nissan 161.6 113.1 109.0 105.0 101.8 113.7 100.5
Honda 162 114 108 105 103 113 101
Suzuki 160 113 109 105 99 114 101
Mazda 162 113 109 105 100 114 101
Mitsubishi 162 113 111 103 100 116 101
Daihatsu 161 110 109 100 102 114 102
FHI 114 108 105 102 114 103
Isuzu
Hino
Average 161.5 112.9 109.0 104.1 101.0 114.1 101.3

(Note) If an OEM announced multiple figures for the exchange rate, the rate used for sales is included in the table above.

 

 



Factors of decreased operating profit plans: 235.8 billion JPY sales fluctuation and 235.2 billion JPY exchange rate fluctuation

 The consolidated operating profit plan for FY2012 of the ten OEMs decreased by 152 billion JPY from the original plan to 2,578 billion JPY. With the reduction of planned sales volume, revenue increase from "changes in sales" originally expected at 1,403.6 billion JPY was reduced to 1,167.8 billion JPY (the factor to the depressed earnings growth: 235.8 billion JPY). The effect of profit decline from "exchange rate fluctuation" was originally estimated at a decrease of 1.2 billion JPY. However, the profit loss increased to 236.4 billion JPY because the assumed exchange was set lower (the factor to the depressed earnings growth: 235.2 billion JPY). The factors that brought positive effects were "R&D cost reduction" with 169.5 billion JPY and "other" factors with 159.6 billion JPY.

 The ten OEMs' total operating profit for the first half of FY2012 was 1,466.5 billion JPY, an increase of 974.4 billion JPY from last year. Increase from changes in sales accounted for 1,036.9 billion JPY and that from cost reduction amounted to 465.9 billion JPY. The decrease from an exchange rate fluctuation accounted for 171.8 billion JPY and that from increased expenses and testing and researching came to 323.1 billion JPY.

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

(JPY in 100 million)
(Refer
-ence)
FY2007
FY2010 FY2011 FY2012 (outlook) First half Second half
  FY2011 FY2012 FY2011 FY2012
(Planned)
Original Upon financial
announce
-ment
for 1H
Total for 10 OEMs Operating profit 45,897 19,187 14,184 27,300 25,780 4,920 14,665 14,267 11,115
Changes in operating profits 2,571 9,547 (5,003) 13,115 11,595 (7,558) 9,744 17,105 1,851
Changes in Sales 6,260 15,132 1,518 14,036 11,678 (4,710) 10,369 19,842 1,309
Impact from exchange fluctuation 863 (7,193) (6,575) (12) (2,364) (3,312) (1,718) (3,881) (646)
Cost reduction etc. 3,111 5,347 2,153 6,698 6,597 (106) 4,659 5,453 2,771
Overhead, R&D costs, etc. (5,849) (3,449) (2,226) (6,039) (4,344) 53 (3,231) (3,502) (2,240)
Others (1,814) (290) 127 (1,568) 28 517 (335) (807) 657
Toyota Operating profit 22,704 4,682 3556 10,000 10,500 (326) 6,937 3,882 3,563
Changes in operating profits 317 3,207 (1,126) 6,444 6,944 (3,557) 7,263 2,431 (319)
Operation/sales 2,900 4,900 1,500 5,500 5,500 (2,200) 5,800 3,700 (300)
Cost improvements 1,200 1,800 1,500 2,400 3,700 500 2,300 1,000 1,400
Impact from exchange fluctuation 0 (2,900) (2,500) 0 (1,100) (1,300) (600) (1,200) (500)
Miscellaneous expenditures (3,302) (300) (1,000) (1,456) (1,156) (400) (200) (600) (956)
(thereof:) R&D cost (681) (250) (500) (50) (300) (450) 300
(thereof:) Facility cost (997) 1,200 300 300      
(thereof:) Labor cost (602) (400) (1,000) (700) (150) (300) 150
(thereof:) Others (1,022) (850) 200 50 250 150 (250)
Others (481) (293) (626) (157) (37) (469) 37
Nissan
(note 1)
Operating profit 7,908 5,375 5,458 7,000 5,750 3,097 2,870 2,361 2,880
Changes in operating profits 353 2,259 83 1,542 292 (252) (227) 335 519
Impact from exchange fluctuation (162) (1,475) (1,700) 400 (180) (1,057) (349) (643) 169
Sales volume/mix 750 4,331 2,236 1,750 110 291 896 1,945 (786)
Purchase cost, etc. 882 1,058 845 1,800 276 833 569
Sales finance 295 498 (170) 310 (51) 188
R & D cost (15) (185) (331) 78 (389) (409)
Sales cost (381) (1,915) (1,513) (1,250) (388) (738) (1,125)
Others (721) 150 48 (988) 362 238 (429) (190) 1,136
Honda Operating profit 9,531 5,697 2,313 6,200 5,200 750 2,768 1,563 2,432
Changes in operating profits 1,012 2,060 (3,384) 3,886 2,886 (3,228) 2,017 (156) 869
Difference from sales fluctuation/ mix 1,700 3,222 (1,551) 4,768 3,828 (1,849) 2,444 298 1,384
Impact from exchange fluctuation 376 (1,376) (1,140) 0 (450) (522) (342) (618) (108)
Effects of cost reduction etc. 115 1,533 (928) 1,520 1,670 (1,171) 1,192 243 478
R & D cost (361) (242) (322) (352) (352) 17 (282) (339) (70)
Sales administration cost (818) (620) 558 (2,050) (1,810) 297 (995) 261 (815)
Impact from the earthquake (457)    
Suzuki
(note 2)
Operating profit 1,494 1,069 1,193 1,200 1,200 647 661 546 539
Changes in operating profits 165 275 124 7 7 (41) 14 165 (7)
Sales/mix, etc. 408 253 (542) 327 427 (386) 184 (156) 243
Impact from exchange fluctuation 225 (283) (289) (250) (310) (114) (169) (175) (141)
Cost reduction 284 355 226 270 230 71 83 155 147
Depreciation (117) 34 353 (140) (140) 149 18 204 (158)
R & D cost (166) 47 (57) (50) (50) (11) (63) (46) 13
Miscellaneous expenditures (469) (131) 433 (150) (150) 250 (39) 183 (111)
Mazda Operating profit 1,621 238 (387) 300 250 (216) 115 (171) 135
Changes in operating profits 36 143 (625) 687 637 (338) 331 (287) 306
Volume/vehicle type mix 80 357 (363) 427 376 (384) 235 21 141
Impact from exchange fluctuation 234 (437) (376) 32 (99) (67) (111) (309) 12
Improving product appeal (133) 171   (171)
Cost reduction 158 112 56 321 367 54 2 367
Sales costs (42) (56) (27) (55) (70) (30) (29) 3 (41)
Others (261) 167 85 (38) 63 89 65 (4) (2)
Mitsubishi Operating profit 1,086 403 637 700 800 342 308 295 492
Changes in operating profits 684 264 234 63 163 273 (34) (39) 197
Volume/vehicle type mix 543 533 168 430 280 227 (9) (59) 289
Impact from exchange fluctuation 146 (342) (105) (220) (140) (19) (87) (86) (53)
Cost reduction, etc. 154 211 272 220 390 99 187 173 203
Others (86) (106) (217) (267) (76) (81) (30) (186)
Sales costs (64) (51) 5 (150) (100) 42 (44) (37) (56)
US sales finance business (95)    
Daihatsu
(note 3)
Operating profit 652 1,034 1,154 1,200 1,200 420 737 734 463
Changes in operating profits 109 627 120 46 46 (107) 317 227 (271)
Sales/vehicle type mix 190 224 237 180 230 (233) 423 470 (193)
Impact from exchange fluctuation 39 (17) (39) 0 (30) (16) (19) (23) (11)
Cost reduction 106 150 78 35 50 48 25 30 25
Sales related costs (37) 92 (92) 0
Miscellaneous expenditures (227) 306 (156) (169) (204) 2 (113) (158) (91)
FHI
(note 4)
Operating profit 457 841 440 670 820 188 433 252 387
Changes in operating profits (22) 567 (401) 230 380 (385) 245 (16) 135
Sales/mix difference (8) 831 12 514 832 (322) 596 334 236
Impact from exchange fluctuation 10 (356) (420) 31 (70) (210) (43) (210) (27)
Cost reduction, etc. 70 89 (22) 211 274 (52) 144 30 130
Testing and research costs (13) (57) (52) (49) (19) (26) (20) (26) 1
Miscellaneous expenditures (81) 61 80 (477) (637) 224 (432) (144) (205)
Isuzu Operating profit 1,096 882 974 1,230 1,260 438 573 536 687
Changes in operating profits 26 772 92 256 286 (30) 135 122 151
Difference from sales fluctuation/ mix (113) 705 58 320 325 (87) 223 145 102
Impact from exchange fluctuation 34 (24) (45) (5) (15) (23) (17) (22) 2
Changes in economic conditions (82) (98) (74) 0 25 (37) 12 (37) 13
Streamlining 172 177 112 80 80 44 34 68 46
Compressing costs etc. 12 92 (124) (114) 73 (114) 19 0
Effect of pervious FY (Earthquake disaster) (51) (15) (15) (3) (51) (12)
Improvement of profitability etc. 76    
Facility/R&D related (137)    
Changed accounting period of subsidiaries 76    
Hino Operating profit 459 289 375 470 530 149 297 226 233
Changes in operating profits 92 278 86 95 155 (15) 148 101 7
Impact on sales 82 337 360 290 290 48 303 312 (13)
Changes in business climate (36) (111) (308) (125) (105) (119) (51) (189) (54)
Cost improvements 190 187 186 180 180 71 86 115 94
Changes in costs (144) (135) (152) (250) (210) (15) (190) (137) (20)
Source: OEMs' financial flash reports and earnings announcement documents
(Note) 1. Due to some difference of factors between FY2012's plan and 1H 2012's result, it is at odds with the FY2012 plan's figure and total of 1H 2012 result and 2H 2012 plan.
2. Nissan's "Purchase costs etc." include costs for raw material and energy.
3. Suzuki's fluctuation in "sales/mix etc." includes influence from raw material cost.
4. Daihatsu's "miscellaneous expenditures" includes depreciation.
5. FHI's "cost reduction etc." includes influence from rising raw material cost.

 

 



Planned capital expenditure marks record high for Nissan, Suzuki, Mazda

 The total capital expenditure of the ten OEMs for FY2012 increased by 34.3% year-on-year to 2,528 billion JPY, slightly decreasing from the originally planned figure. Nissan decreased 30 billion JPY from its original expenditure, while Honda added 20 billion JPY. Nissan, Suzuki, Mazda, Isuzu, and Hino are all still planning their record high capital expenditures.

 The R&D cost for the ten companies combined increased by 6.3% year-on-year to 2,223 billion JPY, slightly decreasing from the original plan, while Nissan and Mazda cut their costs by 18 billon JPY and two billion JPY, respectively. Nissan, Suzuki, and Hino are planning record high investments for this item.

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

(JPY in 100 million)
(Reference)
FY2007
FY2010 FY2011 FY2012 (Planned) First half Second half
  FY2011 FY2012 FY2011 FY2012
(Planned)
Original Upon results
announce
-ment
for the 1H period
Capital expenditure Toyota 14,802 6,423 7,067 8,200 8,200 2,638 3,192 4,429 5,008
Nissan 4,289 3,120 4,064 5,500 5,200 1,125 1,936 2,939 3,264
Honda 6,540 3,113 4,065 5,800 6,000 1,321 2,507 2,744 3,493
Suzuki 2,436 1,303 1,267 2,500 2,500 551 770 716 1,730
Mazda 755 447 780 900 900 313 339 467 561
Mitsubishi 567 525 710 1,090 1,090 214 258 496 832
Daihatsu 1,117 406 693 880 850 256 272 437 578
FHI 563 431 543 720 720 276 339 267 381
Isuzu 506 294 333 660 670 133 269 200 401
Hino 437 300 429 730 630 149 204 280 426
Total for
10 OEMs
30,458 15,656 18,829 25,370 25,280 6,571 9,610 12,258 15,670
Depreciation Toyota 10,424 8,123 7,329 7,300 7,300 3,573 3,436 3,756 3,864
Nissan 3,709 3,721 3,344 3,600 3,400 1,750 1,566 1,594 1,834
Honda 4,173 3,252 2,937 2,850 2,850 1,412 1,311 1,525 1,539
Suzuki 1,616 1,384 1,031 1,170 1,170 476 458 555 712
Mazda 665 716 688 630 630 348 298 340 332
Mitsubishi 719 627 534 670 670 270 242 264 428
Daihatsu 665 637 611 620 590 294 269 317 321
FHI 655 498 537 600 600 254 247 283 353
Isuzu 415 364 360 350 350 180 169 180 181
Hino 442 457 435 420 410 209 195 226 215
Total for
10 OEMs
22,376 18,685 16,760 17,170 16,970 8,263 7,727 8,497 9,243
R & D cost Toyota 9,588 7,303 7,798 8,100 8,100 3,773 4,074 4,025 4,026
Nissan 4,575 3,993 4,280 4,850 4,670 1,775 2,149 2,218 2,521
Honda 5,879 4,875 5,198 5,550 5,550 2,378 2,661 2,497 2,889
Suzuki 1,087 1,041 1,098 1,150 1,150 515 578 526 572
Mazda 1,144 910 917 960 940 473 427 437 513
Mitsubishi 776 494 550 690 690 270 281 224 409
Daihatsu 442 382 338 370 370 170 167 212 203
FHI 520 429 481 530 500 229 249 200 251
Isuzu 603 586 588 630 630 285 298 301 332
Hino 395 411 404 420 420 176 204 235 216
Total for
10 OEMs
24,172 19,631 20,910 22,460 22,230 9,698 10,717 10,428 11,513

Source: OEMs' financial flash reports and earnings announcement documents
Note: Honda revised its method of depreciation for its tangible fixed assets (excluding operating lease assets) from a fixed percentage method to a straight-line method from FY2012. As a result, the depreciation cost for the first half of FY2012 decreased by 21.471 million JPY from the previous method.

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