Japanese OEMs resume full production this summer; all ten OEMs have earnings growth in FY 2010

Despite strong Yen, end of governmental aid and March earthquake

2011/06/20

Summary

 Japanese OEMs' domestic production in March and April 2011 was stricken by the March 11 earthquake and plummeted to around 40% of the previous year. Their production will return to full throttle earlier than expected; and it could happen late this year. It is expected that, in summer, the Japanese auto giants of Toyota, Honda and Nissan will resume their production to the same level as projected before the great earthquake.

 In the FY 2010 results unveiled in late April to early May after the earthquake, all Japanese OEMs did not present the earnings forecast for the next term, because it was difficult to estimate reasonable figures due to the earthquake. Their FY 2010 results all showed earnings growth despite the strong yen, the end of the aid by the Japanese Government and the Great East Japan Earthquake.



Domestic production back to full throttle this summer from the dip of 40 % in March and April after the March 11 Earthquake

 Since the Great East Japan Earthquake on March 11, 2011 hit many parts suppliers, the parts' supply was disrupted. Japanese OEMs were forced to temporarily stop or decrease production.

 Total domestic production by eight passenger car manufacturers were considerably down to 42.5% in March and to 39.9% in April from the same months the year before. Total overseas production of the eight OEMs ended up at 109.1% in March on a year-to-year basis because of the time lag in parts supply, while it plummeted to 79.6% in April over the same month last year. The January-April 2011 production of these eight OEMs was at the 87.9% level worldwide compared to the same period in the previous year; it was at 66.7% in Japan and 103.5% abroad.

 Toyota and Honda expected to resume their full production from autumn 2011 earlier. They unveiled their projection as of May 31 that their production will fully resume by around summer. Nissan plans to resume normal production from June.

Production level and projection

  Production
level in
May 2011
Projection of
recovery
of production
Information
as of
Notes
Toyota Japan About 50% Toyota will resume production at the 90% level of the initial plan from June. It is expected that the production will get back to the initially planned level in August. May 25 In June 2011, Toyota will restore production to the 90% level of the plan before the March 11 earthquake (12K units daily), expecting to restore its daily production level to 13K-unit level in August, according to the news report on May 25, 2011. The overall production level will be restored, but production of certain models will remain low.
Toyota attempts to get back to full production of all models earlier than the target schedule in November to December. It also plans to increase work days by around 10% to raise the total production level by 150 K units. As of May 11, Toyota said that production will be restored to 70% from June.
Overseas About 40% North
America
Production will return to 70% in June May 11 North American production will be resumed at around 70% of its normal operating rate from the beginning of June. According to a Toyota announcement on April 19, it would reduce production to around 30% of its normal operating rate in North America.
China Production will get back to 70% in June May 11 Toyota announced that production at the joint venture in China would be reduced to around 30 to 50% of its normal operating rate from April 21 to June 3.
Europe Production will be resumed at the normal operating rate in June. May 17 Toyota announced the resumption of production at the factories in Europe at the normal operating rate in June. It reduced work days from the end of April to the middle of May.
Thailand Production has resumed at the normal operating rate since May 23. May 23 Toyota returned to full production on May 23. It had reduced production by 70% since April 25.
India Production has been restored at the normal operating rate since May 20. May 20 Production has resumed at the normal operating rate since May 20. To recover delayed production, the Indian factory operates on some non-working Saturdays. On April 22, Toyota announced 30% production from April 24 to June 4.
Honda Japan Around 50% Honda will reduce production to around 50% by June.
It expects to get back to full production by August.
May 30 Honda will consume 14 non-work days in the latter half of FY2011 (from October to March) by September to get ready for increasing production in the latter half. It is also planning to operate six-day a week at its factories in January - March 2012.
Overseas Around 50% North
America
Honda will increase operating rate from June, and restore it to the pre-March 11 level by August. May 27 Full production of the new Civic is expected after this autumn. Since March 30, the four factories in North America have decreased the operating rate by slowing the line speed without overtime work.
Europe Production will stay at around 50% by June. April 25 Since April 11, Honda has decreased factory operating rates at the Swindon Plant in UK and the Kocaeli Plant in Turkey.
Brazil Honda will reduce production to 50% from early June. May 19 Due to a disruption of the parts supply since the March 11 earthquake, Honda will decrease production from 600 units to 300 units per day and change the shift system from three shifts to two from early June. It will shed 400 equal to 12% of all regular employees.
China Honda expects to get back to full production from August. May 30 Honda stopped production at the joint venture in China from April 30 to the middle of May. According to Honda, it was for periodic maintenance purposes, not because of the Great East Japan Earthquake (May 9).
Thailand Honda expects to get back to full production between August and September May 30 Honda stopped taking new orders for the new entry car Brio which was planned to launch in May. Honda will resume production of the model from September.
Nissan Japan Around 90% Nissan will get back to full production by June. May 20 Nissan expects to have a monthly production level of 98 K units in June similar to the level before the March 11 earthquake.
Overseas Around 90% Nissan will get back to full production by June. May 20 Nissan expects to have a monthly production level of 285 K units in June, slightly more than that before the earthquake.
Suzuki Japan Around 70% Suzuki will continue to operate at an around 70% of the normal factory operating rate. May 26 Not yet planned after July
India Full
production
Suzuki will continue normal production in India. May 10 Suzuki has already secured parts supply for production in June.
Mazda Japan 50 to 70%
production
Mazda's factory operating rate is 50 to 70%. Mazda attempts to get back to normal production after October. April 28 Mazda aims to resume full production in the latter half of FY2011 (after October).
Overseas Operating
during
regular work
hours and
days
Mazda will continue to operate at regular work hours and days. April 28 In Thailand, Mazda stopped overtime work and operations on non-workdays.
Mitsubishi Japan Operating
mostly during
regular work
hours and
days
Mitsubishi will get back to full production after June. May 27 As of April 27, Mitsubishi expected to have more than 80% of the planned production in the first quarter and around 80% in the second quarter and full production from October.
Overseas Operating
during
regular work
hours and
days
Mitsubishi will operate at regular work hours and days. April 27 It is likely to have production slightly below the plan in the second quarter. Mitsubishi expects to get back to full production after October.
Daihatsu Japan 80% Daihatsu will operate at a 90% level of the plan from June. May 25 According to the announcement, Daihatsu will resume production of mini cars at 100% of the plan before the earthquake, and of compact cars at the 70 to 80% level from June. After July, the production levels will be decided depending on parts supply.
Overseas Operating
without
overtime and
operation on
non-workdays
Daihatsu operates without overtime/non-workday operation May 12 Since the earthquake, Daihatsu stopped overtime/non-workday operation to reduce the factory operating rate from 130% to 100%.
Fuji Heavy Ind. Japan Around 70% Fuji Heavy Ind. operates at around 70%, attempting to get back to full production in November. May 17 Fuji Heavy Ind. attempts to get back to full production in November.
US Around 70% Fuji Heavy Ind. attempts to resume operations at 80% by this summer.
It also attempts to get back to full operations in November.
May 11 Since the earthquake, Fuji Heavy Ind. has stopped overtime/non-workday operation. It also set non-workdays in April. The line for Toyota Camry has operated at a 40% operating rate since April 15. It will get back to full production from June 6.
Isuzu Japan Around 90% Isuzu attempts to have production at the normal operating rate from the second quarter. May 26  
Hino Japan Around 70% Hino will increase production volume in June, attempting to get back to full production around July. May 10 Hino produces Toyota vehicles by commissioning at a 50% factory operating rate as of May. Hino will increase production in July, attempting to get back to full production around November.
Mitsubishi
Fuso
Japan Around 90% Mitsubishi Fuso will resume production at the normal operating rate in June. May 17 After June, Mitsubishi Fuso will increase production more than the level before the March 11 earthquake to make up for lost hours.
UD
Trucks
Japan Around 70% Unknown    

Source: Compiled from press releases of respective OEMs and news reports

Production volume of eight passenger car manufacturers

(Unit: figures on the lower lines are year-to-year comparison (%))
  March 2011 April 2011 Total from
January - April 2011
Japan Overseas Total Japan Overseas Total Japan Overseas Total
Toyota 129,491 412,974 542,465 53,823 254,732 308,555 700,915 1,398,948 2,099,863
37.3 96.9 70.1 21.6 74.5 52.2 59.6 94.0 78.8
Honda 34,754 247,500 282,254 14,168 124,330 138,498 188,438 808,246 996,684
37.1 96.8 80.8 19.0 56.5 47.1 57.3 90.8 81.7
Nissan 47,590 335,114 382,704 44,193 203,831 248,024 267,066 1,088,934 1,356,000
47.6 133.3 109.0 51.3 81.7 77.6 72.2 121.5 107.1
Suzuki 41,790 187,583 229,373 58,398 162,434 220,832 257,863 680,865 938,728
39.8 121.8 88.6 68.9 112.2 96.2 70.0 114.6 97.5
Mazda 39,887 40,278 80,165 35,313 26,700 62,013 214,469 137,197 351,666
46.4 114.5 66.2 50.3 107.1 65.1 72.6 114.7 84.8
Mitsubishi 49,434 56,795 106,229 27,481 40,758 68,239 198,586 187,888 386,474
74.3 107.9 89.1 68.3 102.6 85.4 95.4 106.1 100.3
Daihatsu 28,091 14,751 42,842 20,578 11,452 32,030 153,825 56,991 210,816
42.7 127.1 55.4 37.4 89.5 47.2 65.6 121.8 75.0
Fuji Heavy Ind. 16,530 14,829 31,359 25,391 8,900 34,291 118,860 53,047 171,907
35.1 106.9 51.4 62.4 67.5 63.7 71.1 104.9 78.9
Total 387,567 1,309,824 1,697,391 279,345 833,137 1,112,482 2,100,022 4,412,116 6,512,138
42.5 109.1 80.4 39.9 79.6 64.3 66.7 103.5 87.9

Source: Compiled from each company's press release

 



Consolidated sales volume up by 9.6% in FY2010 to a total of 20.56 mn units, while domestic sales down by 8.6% to 4.233 mn units

 The FY2010 consolidated four wheeler sales of ten Japanese OEMs were a total of 20.56 million units, up by 9.6% over the previous year. The sales volume exceeded 20 million units for the first time in three years.

 Domestic sales hovered at 4.233 million units, down by 8.6% due to the end of the Governmental aid and the Great East Japan Earthquake, while two commercial vehicle manufacturers had increase in sales thanks to the governmental aid for vehicles in conformance with the so- called Post Long Term regulations. These OEMs, except Nissan, unveiled the nine OEMs' total FY 2010 domestic sales plan as 3.823 million units in the announcement of the third quarter results before the March 11 earthquake; however, the actual sales figure was 3.66 million units which was lower than the plan by about 160 K units or 4.3%.

 On the other hand, overseas sales volume contributed to an increase in sales, up by 15.6% to 16.326 million units.

Consolidated four-wheeler sales volume of ten Japanese OEMs

(Units in 1000)
  FY2007 FY2008 FY2009 FY2010
Initial plan Revised plan
in 3Q
announcement
Results
Sales volume of
four-wheelers
Toyota 8,913 7,567 7,237 7,290 7,480 7,308
Honda 3,925 3,517 3,392 3,615 3,580 3,512
Nissan 3,698 3,138 3,159 3,415 3,743 3,888
Suzuki 2,406 2,306 2,350 2,482 2,584 2,642
Mazda 1,240 1,116 963 1,055 1,102 1,100
Mitsubishi 1,337 1,011 805 1,068 1,070 1,045
Daihatsu 945 945 869 884 929 893
Fuji Heavy Ind. 597 555 563 630 663 657
Isuzu 509 401 288 394 411 408
Hino 112 99 83 98 111 108
Total of ten OEMs 22,624 19,611 18,757 19,949 20,634 20,560
Domestic sales
volume of
four-wheelers
Toyota 2,188 1,945 2,163 1,920 2,020 1,913
Honda 615 556 646 635 595 582
Nissan 684 576 599 539   573
Suzuki 673 665 622 610 610 588
Mazda 257 220 219 211 216 206
Mitsubishi 214 164 170 183 175 166
Daihatsu 571 587 568 544 570 527
Fuji Heavy Ind. 209 179 171 161 161 158
Isuzu 74 58 42 45 46 47
Hino 46 35 27 27 29 29
Total of ten OEMs 4,914 4,363 4,632 4,304   4,233
Overseas sales
volume of
four-wheelers
Toyota 6,725 5,622 5,074 5,370 5,460 5,395
Honda 3,310 2,961 2,746 2,980 2,985 2,930
Nissan 3,013 2,562 2,560 2,876   3,315
Suzuki 1,732 1,641 1,729 1,872 1,974 2,053
Mazda 983 896 744 844 886 894
Mitsubishi 1,123 847 635 885 895 879
Daihatsu 374 358 301 340 359 366
Fuji Heavy Ind. 388 377 392 469 503 499
Isuzu 435 343 246 349 365 361
Hino 66 64 56 71 82 79
Total of ten OEMs 17,709 15,248 14,126 15,645   16,326
Source: each company's brief note on the settlement of accounts and financial results briefing paper
Notes:  1. Daimler's subsidiary Mitsubishi Fuso, and Volvo's subsidiary UD Trucks did not disclose the financial results.
2. Toyota and Honda employ the US GAAP (Generally Accepted Accounting Principles). Mitsubishi represents Mitsubishi Motors. The planned values are according to each company's announcement. The blank columns represent that those data were not unveiled by each relevant company (same applicable to the tables below).
3. Total of ten OEMs do not include the consolidated data of Daihatsu and Hino to avoid double-counts in Toyota's data (same applicable to the tables below).
4. Part of consolidated sales volume includes production parts.
5.
The figures of Nissan's FY2010 plan are references calculated by adding an increase or decrease from its planned global sales volume announced by Nissan to the FY2009 sales record. The global sales volume on a retail basis includes the volume of parts for production which were shipped to and built by equity method overseas companies.
6. Suzuki's sales volume is that of Suzuki brand vehicles excluding OEM vehicles, while the domestic sales volume includes Chevrolet brand vehicles. The FY2010 overseas sales volume include some estimates by Suzuki.
7. Mazda's FY2010 sales volume includes 160 K units arising from the 15-month financial settlement of its overseas subsidiaries which changed the accounting period.
8. Sales volumes of Daihatsu and Hino include only their own brand vehicles, but do not include Toyota's vehicles produced by commissioning (Toyota's sales volume include those of Daihatsu and Hino).
9. Isuzu's FY2007 sales volume includes the volume arising from the 15-month results of its eight overseas consolidated affiliates (overseas sales volume was 385 K units on a 12-month accounting period basis).

 



Total sales of ten OEMs up by 5.7% to 46.5 trillion yen for the first time in three years; Nissan enjoys brisk sales in and outside Japan

 Total FY2010 sales of ten OEMs were 46.5 trillion yen, up by 2.8 trillion yen or 5.7% for the first time in three years. Their total domestic sales were 11.4 trillion yen, down by 3.8% due to the Great East Japan Earthquake and the end of the governmental aid. However, two commercial vehicle manufacturers had sales growth in Japan, because of an increase in sales volume underpinned by the governmental aid program for vehicles in compliance with the Post New Long Term Regulations. Nissan also had sales growth in Japan.

 These ten OEMs' overseas sales grew to a total of 35 trillion yen, up by 8.8%. Eminent sales were Isuzu (up by 30.2%) and Nissan (up by 1.2 trillion yen).

Ten Japanese OEMs' consolidated sales

(Yen in 100 million)
  FY2007 FY2008 FY2009 FY2010
Initial plan Revised
plan in 3Q
announcement
Results
Sales Toyota 262,892 205,296 189,509 192,000 192,000 189,937
Honda 120,028 100,112 85,792 93,400 89,000 89,368
Nissan 108,242 84,370 75,173 82,000 88,000 87,731
Suzuki 35,024 30,049 24,691 25,000 25,500 26,082
Mazda 34,758 25,359 21,639 22,700 23,000 23,257
Mitsubishi 26,821 19,736 14,456 19,000 19,000 18,285
Daihatsu 17,026 16,314 15,747 14,500 15,500 15,594
Fuji Heavy Ind. 15,723 14,458 14,287 14,700 16,000 15,806
Isuzu 19,248 14,247 10,809 13,400 14,300 14,155
Hino 13,686 10,695 10,235 11,200 12,600 12,427
Total of ten OEMs 622,738 493,626 436,356 462,200 466,800 464,621
Domestic sales Toyota 61,362 54,218 57,291     53,250
Honda 15,858 14,465 15,773     15,038
Nissan 21,878 20,383 18,032     18,694
Suzuki 9,814 9,656 9,526 9,300 9,500 9,374
Mazda 8,801 6,203 5,750 5,500 5,600 5,415
Mitsubishi 4,885 3,984 3,685 4,100 3,950 3,633
Daihatsu 11,771 11,913 11,296 10,200 10,700 10,567
Fuji Heavy Ind. 5,440 5,075 5,208 4,400 4,800 4,673
Isuzu 6,547 5,338 4,330 4,600 4,900 4,986
Hino 9,246 6,944 6,754     8,455
Total of ten OEMs 134,586 119,322 119,595     115,063
Overseas sales Toyota 201,530 151,078 132,218     136,687
Honda 104,171 85,647 70,019     74,330
Nissan 86,364 63,987 57,141     69,037
Suzuki 25,210 20,393 15,165 15,700 16,000 16,708
Mazda 25,957 19,156 15,889 17,200 17,400 17,842
Mitsubishi 21,936 15,752 10,771 14,900 15,050 14,652
Daihatsu 5,255 4,401 4,452 4,300 4,800 5,027
Fuji Heavy Ind. 10,284 9,383 9,079 10,300 11,200 11,132
Isuzu 12,701 8,909 6,479 8,800 9,400 9,169
Hino 4,440 3,751 3,481     3,972
Total of ten OEMs 488,153 374,304 316,761     349,557

Source: each company's brief note on the settlement of accounts and financial results briefing paper
NOTE: Domestic and overseas sales show sales by location of external customers.

 



Ten OEMs post positive operating and ordinary profits, while Mazda and Hino result in overall deficit due to the Earthquake

 In FY 2010, ten Japanese OEMs posted positive operating and ordinary profits (for the first time in three years since FY 2007). All of them had an increase in operating profits to a total of 1,919 billion yen, up by two-fold. Honda recorded 569.7 billion yen (up by 57%), followed by Nissan 537.5 billion yen (up by 72%), and Toyota 468.2 billion yen (by 3.2 times).

 Fuji Heavy Industries turned to a positive net profit, while Mazda and Hino posted negative net profits for three straight years. Mazda and Hino reduced a part of deferred tax assets by 56.7 billion yen and 12.6 billion yen, respectively, because these companies could not foresee future earnings due to the earthquake. These financial actions were responsible for the negative figures. (For influences on each OEM's earnings from the earthquake, see notes of the table below.)

Ten Japanese OEMs' consolidated operating profits, ordinary profits and net profits

(Yen in 100 million yen)
  FY2007 FY2008 FY2009 FY2010
Initial plan Revised
plan in 3Q
announcement
Results
Operating profit Toyota 22,704 (4,610) 1,475 2,800 5,500 4,682
Honda 9,531 1,896 3,637 4,000 6,200 5,697
Nissan 7,908 (1,379) 3,116 3,500 5,350 5,375
Suzuki 1,494 769 794 800 1,000 1,069
Mazda 1,621 (284) 95 300 250 238
Mitsubishi 1,086 39 139 450 450 403
Daihatsu 652 382 407 430 820 1,034
Fuji Heavy Ind. 457 (58) 274 430 850 841
Isuzu 1,096 217 110 450 800 882
Hino 459 (194) 11 250 300 289
Total of ten OEMs 45,897 (3,410) 9,640 12,730 20,400 19,187
Ordinary profit Toyota 24,372 (5,604) 2,914 3,300 6,600 5,632
Honda 8,958 1,617 3,361 4,100 6,650 6,305
Nissan 7,664 (1,727) 2,077 3,150 5,300 5,378
Suzuki 1,569 797 938 950 1,100 1,225
Mazda 1,485 (187) 46 290 360 369
Mitsubishi 857 (149) 130 300 300 389
Daihatsu 666 395 438 450 880 1,122
Fuji Heavy Ind. 454 (46) 224 380 840 822
Isuzu 1,223 152 114 420 800 913
Hino 410 (304) (19) 210 250 251
Total of ten OEMs 46,583 (5,147) 9,804 12,890 21,950 21,033
Net profit Toyota 17,179 (4,369) 2,094 3,100 4,900 4,081
Honda 6,000 1,370 2,684 3,400 5,300 5,340
Nissan 4,823 (2,337) 424 1,500 3,150 3,192
Suzuki 803 274 289 300 350 452
Mazda 918 (715) (65) 50 60 (600)
Mitsubishi 347 (549) 48 150 150 156
Daihatsu 349 221 212 210 440 526
Fuji Heavy Ind. 185 (699) (165) 230 630 503
Isuzu 760 (269) 84 200 520 516
Hino 222 (618) (30) 110 90 (100)
Total of ten OEMs 31,015 (7,294) 5,393 8,930 15,060 13,640
Source: each company's brief note on the settlement of accounts and financial results briefing paper
Notes: 1. Toyota and Honda employ the US GAAP, and thus, their ordinary profits are pre-tax current income.
2. Toyota said that it had an operating profit of 578.2 billion yen except effects from the earthquake in the fiscal year ended in March 2011. It estimated the impact on the operating profit from the March 11 earthquake as negative 110 billion yen. The operating profit was, therefore, 468.2 billion yen for the whole fiscal year ended in March 2011.
3. Honda determined losses from the Great East Japan Earthquake as 45.72 billion yen, of which 17.45 billion yen was posted as net sales cost and 28.27 billion yen as sales and general administrative expenses for FY2010.
4. Nissan determined losses from the March 11 earthquake as 39.61 billion dollars and posted the losses as a special loss in the FY2010 financial results.
5. Suzuki posted a loss of five billion yen arising from damaged vehicles due to the March 11 disaster as non-operating expenses.
6. For FY 2010, Mazda posted special losses of a provision for losses of 8.5 billion yen for the North American business and losses of 5.2 billion yen ascribable to the March 11 earthquake. Taking into account that the FY 2011 profits would be lower than the original plan, Mazda reduced a part of deferred tax assets by about 56.7 billion yen, and posted it as effects on income taxes. Mazda determined the FY2010 operating profit except the effects from the March 11 earthquake as about 28 billion yen.
7. Mitsubishi posted losses of 2.37 billion yen from the March 11 earthquake as a special loss in FY 2010.
8. Daihatsu posted losses of 5.02 billion yen from the March 11 earthquake as a special loss in FY 2010.
9.
Fuji Heavy Industries posted losses of 7.35 billion yen from the March 11 earthquake as a special loss in FY 2010.
10. Isuzu posted losses of 9.03 billion yen from the March 11 earthquake as a special loss in FY 2010.
11. Hino posted a fixed expense of 6.1 billion yen during the down period after the Great East Japan Earthquake as a special loss in FY2010. It conservatively estimated the possibility of the collection of deferred tax assets due to March 11. It reduced 12.6 billion yen from a part of them, and posted it as effects of income taxes.

Average exchange rate of ten Japanese OEMs

(Unit: Yen)
  FY2007 FY2008 FY2009 FY2010
Initial plan Revised plan
in 3Q
announcement
Results
USD 114.4 101.1 92.6 90.0 84.9 85.7
Euro 161.5 145.1 130.9 121.3 112.2 112.9

 



Factors of improving operating profits: Sales growth and cost reduction absorb the loss from exchange fluctuations

 The total FY2010 operating profits of ten Japanese OEMs were up by 954.7 billion yen. Sales fluctuation and cost reduction improved operating profits by 1.51 trillion yen and 534.7 billion yen, respectively. An exchange loss of 719.3 billion yen and an increase in operating and R&D expenses of 344.9 billion yen depressed earnings growth.

Factors to boost Japanese OEMs' operating profits

(Yen in 100 million)
  FY2007 FY2008 FY2009 FY2010
Initial
plan
Revised
plan
in 3Q
announcement
Results
Toyota Operating profit 22,704 (4,610) 1,475 2,800 5,500 4,682
Changes of Operating profit 317 (27,314) 6,085 1,325 4,025 3,207
Business/sales 2,900 (14,800) (3,700) (500) 5,400 4,900
Cost reduction 1,200 0 5,200 1,300 1,700 1,800
Financial business     2,700      
Exchange rate fluctuation 0 (7,600) (3,200) (800) (3,100) (2,900)
Overhead (3,302) (4,791) 4,700 1,600 300 (300)
Of the overhead, R&D expense (681) 548 1,787     (250)
Of the overhead, expenses for facilities etc. (997) (904) 378     1,200
Of the overhead, labor cost (602) 1,088 627     (400)
Of the overhead, others (1,022) (5,523) 1,908     (850)
Others (481) (122) 385 (275) (275) (293)
Honda Operating profit 9,531 1,896 3,637 4,000 6,200 5,697
Changes of Operating profit 1,012 (7,634) 1,741 362 2,562 2,060
Sales fluctuations/model mix, etc. 1,700 (2,477) (2,465) 1,989 3,429 3,222
Exchange rate fluctuations 376 (2,695) (1,675) (450) (1,540) (1,376)
Effects from cost reduction etc. 115 (1,825) 674 60 1,480 1,533
R&D expenses (361) 247 998 (367) (367) (242)
Sales administrative expenses (818) (883) 4,209 (870) (440) (620)
Effects from the March 11 earthquake           (457)
Nissan
(See Note 3)
Operating profit 7,908 (1,379) 3,116 3,500 5,350 5,375
Changes of Operating profit 353 (9,287) 4,495 384 2,234 2,259
Exchange rate fluctuations (162) (2,230) (1,625) (300)   (1,475)
Sales fluctuations/model mix, etc. 750 (5,252) 269 2,700   4,331
Purchase expenses etc. 882 (1,342) 2,154 600   1,058
Sales finance           295
Reserve for leasing   (918) 1,417 (400)    
R&D expenses (15)   645 (450)   (185)
Sales expenses (381)   271 (1,400)   (1,915)
Others (721) 455 1,364 (366)   150
Suzuki Operating profit 1,494 769 794 800 1,000 1,069
Changes of Operating profit 165 (725) 25 6 206 275
Sales fluctuations/model mix, etc. 408 (1,422) (696) (34) 366 253
Exchange rate fluctuations 225 (707) (469) (240) (330) (283)
Cost reduction 284 201 172 170 200 355
Depreciation (117) 204 (6) 120 120 34
R&D expenses (166) (63) 62 (10) (10) 47
Overhead etc. (469) 1,062 962   (140) (131)
Mazda Operating profit 1,621 (284) 95 300 250 238
Changes of Operating profit 36 (1,905) 379 205 155 143
Volume/vehicle type mix 80 (865) (606) 290 466 357
Exchange rate fluctuations 234 (1,020) (765) (40) (451) (437)
Improvement of product line (133) (190)        
Cost reduction 158 440 680 0 91 112
Raw materials market conditions   (440)        
Sales expenses (42) 65 227 (60) (68) (56)
Others (261) 105 843 15 117 167
Mitsubishi Operating profit 1,086 39 139 450 450 403
Changes of Operating profit 684 (1,047) 100 311 311 264
Volume/vehicle type mix 543 (720) (856) 540 630 533
Exchange rate fluctuations 146 (761) (418) (100) (350) (342)
Cost reduction etc. 154 365 544 200 230 211
Effects from price rise of raw materials   (317)        
Others   335 578 (249) (139) (86)
Sales expenses (64) 174 252 (80) (60) (51)
US sales finance business (95) (123)        
Daihatsu Operating profit 652 381 407 430 820 1,034
Changes of Operating profit 109 (271) 26 23 413 627
Volume/vehicle type mix 190 113 (258) (70) 290 224
Exchange rate fluctuations 39 (80) (79) (30) (85) (17)
Cost reduction 106 105 123 125 155 150
Quality improvement expenses         (139) (7)
Sales expenses         (54) (37)
Overheads etc. (227) (408) 239 (2) 246 313
Fuji Heavy Ind. Operating profit 457 (58) 274 430 850 841
Changes of Operating profit (22) (515) 332 156 576 567
Model mix (8) 3 87 209 851 831
Exchange rate fluctuations 10 (435) (304) (127) (384) (356)
Cost reduction etc. 70 (32) 260 130 88 89
Testing and research expenses (13) 92 57 (88) (59) (57)
Overheads (81) (143) 232 32 81 61
Isuzu Operating profit 1,096 217 110 450 800 882
Changes of Operating profit 26 (879) (107) 340 690 772
Sales fluctuations/model mix (113) (800) (807) 470 730 705
Exchange rate fluctuations 34 (156) (23) 0 (30) (24)
Effects from economic fluctuations (82) (273) 181 (120) (100) (98)
Streamlining 172 190 130 110 170 177
Cost reduction, etc.     412 (120) (80) 12
Improvement of profitability, etc. 76 344        
Expenses for facilities and R&D (137) (108)        
Changes of fiscal term of its subsidiaries 76 (76)        
Hino Operating profit 459 (194) 11 250 300 289
Changes of Operating profit 92 (653) 205 239 289 278
Effects on sales 82 (330) 231 60 350 337
Fluctuations in business climate (36) (366) (70) (105) (120) (111)
Improvement of net costs 190 163 199 190 190 187
Cost fluctuations etc. (144) (120) 190 (46) (131) (135)
Changes in sales volume     (345) 140    
Total of
ten OEMs
Operating profit 45,897 (3,410) 9,640 12,730 20,400 19,187
Changes of Operating profit 2,571 (49,306) 13,050 3,089 10,759 9,547
Sales fluctuations 6,260 (26,333) (8,774) 5,664 11,872 15,132
Effects from exchange rate fluctuations 863 (15,604) (8,479) (2,057) (6,185) (7,193)
Cost reduction 3,111 (2,416) 10,226 2,450 3,879 5,347
Overhead and R&D expenses (5,849) (4,348) 12,615 (1,693) (763) (3,449)
Others (1,814) (605) 7,462 (1,257) 1,956 (290)
Source: each company's brief note on the settlement of accounts and financial results briefing paper
Notes: 1. Toyota and Honda employ the US GAAP, and thus, their ordinary profits are pre-tax current income.
2. Nissan's purchase cost etc. include raw materials and energy costs.
3. Suzuki's Sales fluctuations/model mix, etc. includes effects from raw materials costs.
4. Fuji Heavy Industries' cost reduction, etc. include effects from price rise of raw materials.

 



Investment in facilities and R&D expenses make first increase in three years

 The FY2010 total capital expenditure of ten OEMs was up by 6.3% to 1.566 trillion yen, which was the first increase in three years. On the other hand, the total depreciation of them was 1.869 trillion yen. Capital expenditure continued to fall below depreciation. R&D expenses increased by 3.1% for the first time in three years to 1.96 trillion yen.

Consolidated capital expenditure, depreciation and R&D expenses of ten Japanese OEMs

(Yen in 100 million)
  FY2007 FY2008 FY2009 FY2010
Initial plan Revised
plan in 3Q
announcement
Results
Capital expenditure Toyota 14,802 13,025 5,790 7,400 6,200 6,423
Honda 6,540 5,991 3,297 3,800 3,300 3,113
Nissan 4,289 3,836 2,736 3,600 3,400 3,120
Suzuki 2,436 2,162 1,312 1,700 1,700 1,303
Mazda 755 818 298 600 600 447
Mitsubishi 567 719 471 760 760 525
Daihatsu 1,117 767 367 540 450 406
Fuji Heavy Ind. 563 580 561 560 560 431
Isuzu 506 667 257 370 380 294
Hino 437 584 285 330   300
Total of ten OEMs 30,458 27,798 14,722 18,790   15,656
Depreciation Toyota 10,424 10,721 10,320 9,000 8,400 8,123
Honda 4,173 4,082 3,666 3,500 3,300 3,252
Nissan 3,709 4,212 3,633 3,800 3,700 3,721
Suzuki 1,616 1,412 1,418 1,300 1,300 1,384
Mazda 665 752 764 730 730 716
Mitsubishi 719 790 690 700 700 627
Daihatsu 665 837 729 710 660 637
Fuji Heavy Ind. 655 651 571 520 520 498
Isuzu 415 396 395 380 370 364
Hino 442 475 452 450   457
Total of ten OEMs 22,376 23,016 21,457 19,930   18,685
R&D expenses Toyota 9,588 9,040 7,253 7,600 7,400 7,303
Honda 5,879 5,631 4,633 5,000 5,000 4,875
Nissan 4,575 4,555 3,855 4,300 4,250 3,993
Suzuki 1,087 1,150 1,088 1,100 1,100 1,041
Mazda 1,144 960 852 1,000 950 910
Mitsubishi 776 640 444 560 520 494
Daihatsu 442 442 437 410 390 382
Fuji Heavy Ind. 520 428 372 460 433 429
Isuzu 603 677 552 600 600 586
Hino 395 409 381 404   411
Total of ten OEMs 24,172 23,081 19,049 20,620   19,631

Source: each company's brief note on the settlement of accounts and financial results briefing paper
Note: Nissan's capital expenditure and depreciation include expenses related to finance leasing from FY2008 (they are not included in the data by FY2007). The FY 2007 investment according to the same standards as FY 2008 was 516.4 billion yen.

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