Toyota Industries Corporation Business Report FY ended Mar. 2014
Business Highlights
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | Rate of change (%) | Factors | |
| Overall | ||||
| Sales | 2,007,856 | 1,615,244 | 24.3 | - |
| Operating profit | 107,691 | 77,098 | 39.7 | - |
| Ordinary profit | 138,133 | 86,836 | 59.1 | - |
| Net profit | 91,705 | 53,119 | 72.6 | - |
| Automotive Division | ||||
| Sales | 1,006,678 | 858,671 | 17.2 | 1) |
| Operating profit | 35,175 | 29,411 | 19.6 | - |
Automotive division performance by business
1)
-Despite sluggish sales in the Japanese market in the first half of the fiscal year, the Automobile Segment made a turnaround in the second half. Overseas, the global market continued to expand on the back of strong sales in the Chinese and North American markets.
Vehicle Business
-Net sales of the Vehicle Business amounted to 467.0 billion yen, an increase of 110.3 billion yen, or 31%. Unit sales of the RAV4 increased while those of the Vitz (Yaris overseas) registered a decrease.
Engine Business
-Net sales of the Engine Business totaled 202.5 billion yen, a decrease of 14.2 billion yen, or 7%. This is attributable primarily to a decrease in sales of AR gasoline engines, although sales of KD diesel engines increased.
Air-Conditioning Compressor Business
-Net sales of the Car Air-Conditioning Compressor Business totaled 275.7 billion yen, an increase of 47.6 billion yen, or 21%, resulting from an increase in sales worldwide.
Total Engine Production of 15 million units
-In 2013, the Company announced that its total production of engines for automobiles and industrial vehicles exceeded 15 million. The company started supplying gasoline engines for Toyota's Corona model in 1953 and achieved the production volume in 60 years. The ceremony for celebrating the achievement was held at the Hekinan plant (Hekinan-city, Aichi prefecture), the exclusive plant for engine production, attended by 100 concerned people including the firm's president, Mr. Tetsuro Toyoda. Toyota Industries currently produce gasoline engines, diesel engines, and engines for heavy-duty industrial vehicles at two plants-the Hekinan plant and the Higashichita plant (Handa-city, Aichi prefecture). The firm plans to produce 776,000 engines, the yearly highest number during fiscal 2013. (From an article in the Nikkan Jidosha Shimbun on Jun 6, 2013)Total DC-AC Inverter Production of 10 million units
-In 2013, the Company announced that the total production of automotive DC-AC inverters has exceeded 10 million units. The company's product portfolio covers DC-AC inverters ranging from 100 to 1,500 watts of electric power output to cater to specific markets and usage. (From a press release on April 4, 2013)>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Financial Overview for FY ended Mar. 31, 2015 |
(in millions of JPY) |
| FY ending Mar. 31, 2015 (forecast) |
FY ending Mar. 31, 2014 | |
| Sales | 2,100,000 | 2,007,856 |
| -Automotive Division | 1,035,000 | 1,006,678 |
| Operating income | 115,000 | 107,691 |
| Ordinary income | 148,000 | 138,133 |
| Net income | 100,000 | 91,705 |
Sales of Automotive Products |
(in millions of JPY) |
| FY ending Mar. 31, 2015 (forecast) |
FY ending Mar. 31, 2014 | |
| Complete vehicles | 472,000 | 467,000 |
| Engines | 184,000 | 202,500 |
| Compressors | 310,000 | 275,700 |
| Foundry parts, Electronic components | 69,000 | 61,200 |
(Sales categorized based on customers' business lines)
R&D
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
| Overall | 46,326 | 39,057 | 32,070 |
| Automobiles | 27,385 | 23,817 | 20,649 |
Product Development
<Powertrain Unit for AWD EVs>-In 2013, the Company is developing a powertrain unit for all-wheel-drive (AWD) electric vehicles (EVs). This unit will be supplied to Japanese carmakers for EV models that are expected to be released during the fiscal year ending March 2017. EVs and hybrid vehicles are becoming popular green vehicle options. However, compared to gasoline-powered cars, EVs offer fewer AWD versions. In addition, driving performance of EVs is not as good as gasoline cars in cold climates. To address these problems, Toyota Industries hopes to commercialize the AWD electric powertrain unit and to upgrade performance of EVs. (From an article in the Nikkan Jidosha Shimbun on November 20, 2013)
<DC-DC Converter for Idling Stop Function>
-In 2013, the Company has developed a DC-DC converter for idling stop function and won the first order for it from an automaker. The supply will start in fiscal 2013. This component is designed to ensure stable operation of wipers, lamps, a car navigation system, etc., by preventing voltage drop when the fuel-saving system shuts down and restarts an engine. The automaker adopted the component for increased perfectibility of the idling stop system. Considering that electric parts for the idling stop system, and for hybrid cars, have a high growth potential, the company “intends to develop and introduce other components with functions to store or generate electric power as well.” This may allow the company to increase its sales of new products while expanding its product range. (From an article in the Nikkan Jidosha Shimbun on Mar. 8, 2013)
Investment Activities
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
| Overall | 157,382 | 124,282 | 91,972 |
| Automobiles | 72,566 | 63,005 | 36,732 |
Car Air-Conditioning Compressor Business
<Indonesia>-In 2013, TD Automotive Compressor Indonesia (TACI), a joint venture between the Company, PT. Astra Otoparts Tbk, Denso Corporation, and Toyota Tsusho Indonesia, started to build their own factory. Since 2011 TACI has been producing compressors in the Denso Indonesia's plant, and gradually will move its activities to their factory until 2018. The plant which will be built on 10 ha land area is planned to start operating in October 2014 and targeted to produce 3.5 million units compressor in 2015, where, previously, it produced approximately 1.75 million units. In this new factory, TACI invests 6.5 billion yen investment or approximately 747 billion rupiah and targeted to recruit approximately 500 new workers. It is expected that TACI's compressor business develops well, TACI will supply compressor not only for domestic and ASEAN markets but also European and American markets. (From a press release on December 4, 2013)
<China>
-In 2013, the Company will build a new plant for producing automotive air-conditioning compressors in Jiangsu Province, China, by autumn 2014. The company has another plant producing the same products in Jiangsu. Toyota Industries will transfer and consolidate production of the products from the current plant to the new plant in stages. The new plant is scheduled to begin operations in October 2014, and the current plant will discontinue production in 2016. The new plant will increase the company’s annual production capacity to 1.5 million units, which is three times larger than its current level of production. The total investment for acquiring a new site, constructing new buildings and transferring production is estimated at approximately JPY 4.7 billion. Toyota intends to secure sufficient production capacities and increase its competitiveness in the growing Chinese market. ( From an article in the Nikkan Jidosha Shimbun on November 8, 2013)
Breakdown in Capital Expenditures by Major Automotive Division |
(in millions of JPY) |
| Unit | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 |
| The Company | 20,925 | 19,101 | 17,076 |
| Tokaiseiki Co., Ltd. | 2,237 | 1,356 | 1,631 |
| Tokyu Co., Ltd. | N.A. | 1,536 | N.A. |
| Izumi Machine MFG. Co., Ltd. | 1,050 | 1,086 | N.A. |
| Toyota Industry (Kunshan) Co., Ltd. | 5,112 | 1,048 | 1,598 |
| Toyota Industries Compressor Parts America | 16,248 | 10,292 | N.A. |
| Kirioskar Toyoda Textile Machinery Pvt. Ltd. | 1,653 | N.A. | 1,070 |
| TD Deutsche Klimakompressor GmbH | 3,416 | 9,211 | 1,219 |
| Michigan Automotive Compressor, Inc. | 11,039 | 9,737 | 6,205 |
| TD Automotive Compressor Indonesia | 4,208 | 3,137 | 2,984 |
| TD Automotive Compressor Georgia, LLC | 4,095 | 4,614 | 2,377 |
New Equipment Installations (Automotive Business) |
(As of Mar. 31, 2014) |
| Company/ Plant (Location) |
Equipment to be installed | Planned amount of investment (millions of yen) | Project period | |
| From | To | |||
| Companies included in consolidated financial statements | ||||
| Hekinan Plant (Aichi Pref., Japan) |
Facilities for manufacturing gasoline and diesel engines |
11,600 | May. 2013 | Mar. 2015 |
| Higashichita Plant (Aichi Pref., Japan) |
Facilities for manufacturing casting products used in engines |
5,418 | Oct. 2013 | Mar. 2015 |
| Kariya Plant (Aichi Pref., Japan) |
Facilities for manufacturing automobile air-conditioner compressors |
3,900 | Apr. 2014 | Mar. 2015 |
| Kyowa Plant (Aichi Pref., Japan) |
Facilities for manufacturing in-vehicle electronic devices |
3,851 | Jan. 2012 | Mar. 2015 |
| Nagakusa Plant (Aichi Pref., Japan) |
Facilities for manufacturing passenger vehicles |
3,000 | Apr. 2014 | Mar. 2015 |
| Obu Plant (Aichi Pref., Japan) |
Facilities for manufacturing compressor components used in automobile air-conditioners |
1,700 | Apr. 2014 | Mar. 2015 |
| Anjo Plant (Aichi Pref., Japan) |
Facilities for manufacturing in-vehicle electronic devices |
1,600 | Apr. 2014 | Mar. 2015 |
| Higashiura Plant (Aichi Pref., Japan) |
Facilities for manufacturing compressor components used in automobile air-conditioners | 700 | Apr. 2014 | Mar. 2015 |
| Subsidiaries in Japan | ||||
| Tokaiseiki Co., Ltd. (Shizuoka Pref., Japan) |
Facilities for manufacturing automotive components |
2,112 | Apr. 2014 | Mar. 2015 |
| Izumi Machine Mfg. Co., Ltd. (Aichi Pref., Japan) |
Facilities for manufacturing automotive components |
1,651 | Apr. 2014 | Mar. 2015 |
| Tokyu Co., Ltd. (Aichi Pref., Japan) |
Facilities for manufacturing automotive components |
1,105 | Apr. 2014 | Mar. 2015 |
| Subsidiaries outside Japan | ||||
| Kirioskar Toyota Textile Machinery Pvt. Ltd. (Bangalore, India) |
-Facilities for manufacturing automotive components -Facilities for manufacturing textile machinery |
11,500 | Apr. 2014 | Mar. 2015 |
| xxxMichigan Automotive Compressor, Inc. (Michigan, USA) |
Facilities for manufacturing compressor components used in automobile air-conditioners | 7,166 | Apr. 2014 | Mar. 2015 |
| Toyota Industries Compressor Parts America, Co. (TICA) (Georgia, USA) |
Facilities for manufacturing compressor parts for automotive air conditioners. | 5,235 | Apr. 2014 | Mar. 2015 |
| Toyota Industry (Kunshan) Co., Ltd. | Facilities for manufacturing casting products used in engines Facilities for manufacturing industrial vehicles |
4,859 | Apr. 2014 | Mar. 2015 |
| TD Automotive Compressor Kunshan Co., Ltd. | Facilities for manufacturing compressor parts for automotive air conditioners. | 4,790 | Apr. 2014 | Mar. 2015 |
| TD Automotive Compressor Indonesia (Bekashi, Indonesia) |
Facilities for manufacturing compressor components used in automobile air-conditioners | 4,527 | Apr. 2014 | Mar. 2015 |
| TD Automotive Compressor Georgia, LLC (Georgia, USA) |
Facilities for manufacturing compressor components used in automobile air-conditioners | 1,833 | Apr. 2014 | Mar. 2015 |
| TD Deutsche Klimakompressor GmbH (Sachsen, Germany) |
Facilities for manufacturing compressor components used in automobile air-conditioners | 1,707 | Apr. 2014 | Mar. 2015 |
| Yantai Shougang TD Automotive Compressor Co., Ltd. | Facilities for manufacturing compressor components used in automobile air-conditioners | 1,263 | Apr. 2014 | Mar. 2015 |