Toyota Motor Corporation and its subsidiaries engage in the production of automobiles Japan. The company operates in three segments: Automotive Operations, Financial Service Operations, and Other Operations. The Automotive Operations segment designs, manufactures, assembles, and sells cars, recreational and sport-utility vehicles, minivans and trucks, and related parts and accessories. The Financial Services Operations segment primarily provides finance to dealers and their customers for the purchase or lease of Toyota vehicles. This segment also provides retail financing, retail leasing, wholesale financing and insurance, credit cards, and mortgage loans.
The Other Operations segment designs and manufactures prefabricated housing and information technology related businesses, including intelligent transport systems and an e-commerce marketplace, called Gazoo.com. Toyota sells its vehicles approximately in 170 countries. It operates in Japan, North America, and Europe. Toyota Motor Corp. was founded in 1933 and is based in Toyota City, Japan. < http://finance.yahoo.com/q/pr?s=TM>
Toyota Motor Corporation is one of the world‘s leading automakers, offering a full range of models, from minivehicles to large trucks. Global sales of its Toyota and Lexus brands, combined with those of Daihatsu and Hino, totaled 6.78 million units in CY2003*. Besides its own 12 plants and 11 manufacturing subsidiaries and affiliates in Japan, Toyota has 51 manufacturing companies in 26 countries/locations, which produce Lexus- and Toyota-brand vehicles and components. As of March 2004, Toyota employs 264,000 people worldwide (on a consolidated basis), and markets vehicles in more than 140 countries.
Automotive business, including sales finance, accounts for more than 90% of the company’s total sales, which came to a consolidated ¥17.29 trillion in the fiscal year to March 2004. Diversified operations include telecommunications, prefabricated housing and leisure boats. < http://www.toyota.co.jp/en/about_toyota/overview/index.html> Profit of Company
TOKYO – Toyota Motor Corp.’s profit rose 2 percent in the July-September 2005 quarter, lifted by growing sales around the world – in sharp contrast with the dismal results at U.S. counterparts General Motors and Ford. Japan’s No. 1 automaker on 4-Nov-2005 reported its group net profit for the fiscal second quarter rose to 303.7 billion yen, or $2.6 billion, from 297.4 billion yen the same period a year ago. Sales for the quarter rose 9 percent to 4.97 trillion yen, $42 billion, from 4.5 trillion yen. The results put Toyota on pace to set a record net profit for the full fiscal year through March 2006 for the fourth straight year.
Toyota, the maker of the best-selling Camry compact and Prius gas-and-electric hybrid cars, does not give consolidated forecasts, but it said Friday it expected to sell 8.03 million vehicles for the current fiscal year, up 60,000 vehicles from its August forecast, and above the 7.4 million vehicles sold the previous year.
That annual figure for fiscal 2005 is still fewer than General Motors Corp.’s yearly sales, but if trends continue, Toyota will overtake GM in the next few years, some analysts say. Toyota has already passed up Ford Motor Co. as the world’s second biggest automaker. GM produced 9.1 million vehicles last year. < http://www.softcom.net/webnews/wed/ak/Ayb84945584.RxMF_FO4.html> Products of Company
Toyota vehicles, past and present, sold under the Toyota brand. Most were made by the Toyota Motor Corporation. Current production vehicles: Toyota 4Runner (1984-present, known as the Toyota Hilux Surf in Japan, Toyota Allion (2001-present), Toyota Aurion (2006-present, Australia), Toyota Avalon (1995-present, previously sold in Japan as the Toyota Pronard), Toyota Avanza (2003-present), Toyota Avensis (1998-present, coupe is also sold as the Scion tC), Toyota Aygo (2005-present), Toyota bB (2000-present, sold as the Scion xB in the United States) Toyota Camry (1983-present), Toyota Camry Solara (1999-present), Toyota Century (1967-present), Toyota Corolla/Sprinter (1966-present).< http://en.wikipedia.org/wiki/List_of_Toyota_vehicles> Marketing Strategy of Company
Toyota Motor Corp. main strategy for the North American market is to aim for higher sales, while raising the proportion of locally produced automobiles. Toyota Motor Corp have reached a stage where investments made over the last several years to expand production capacity are beginning to show returns and improved profitability can be expected. Toyota’s goal is to bolster local production through additional investment, and contribute to the regional economy by expanding its operations. At present, our production capacity in North America is approximately 1.25 million units (including our joint venture with GM).
However, Toyota Motor Corp plan to boost this to 1.45 million units during 2003. Thus far, our product strategy of successively expanding our model range, from smaller cars to luxury sedans, full-sized pickup trucks, large SUVs, and crossover vehicles has proved successful. In a bid to further extend our customer base, we have established the Scion marketing group, which will develop a range of vehicles targeting young, first-time car buyers. With respect to environmental issues, Toyota’s hybrid automobile Prius, which was introduced to the North American market in 2000, has been extremely well received and development is under way to launch our next-generation hybrid car.
The Company intends to continue to be an energetic leader in the environmental field. For example, we are participating in the California Fuel Cell Partnership (CaFCP), a public highway test program aimed at the commercialization of fuel cell vehicles. One of the outcomes of this project is that Toyota has scheduled the simultaneous, limited marketing of a fuel cell hybrid SUV in Japan and the United States around the end of 2002. < http://www.toyota.co.jp/en/ir/reports/annual_reports/02/interview/interview2.html> Competition of Company
Reuters reported that General Motors Corporation, Ford Motor Company and Mazda Motor Corp. are recalling almost 35,000 cars for a range of defects. Ford is recalling over 19,000 Mustang Cobras from the 2003 and 2004 model years because the accelerator pedal can stick on the floor carpeting in the car. The accelerator problem could cause crashes when the pedal catches on a cutout area of the floor carpeting during sharp acceleration. Ford will install carpet ‘shields’ to address the safety issue. In addition, General Motors is recalling almost 13,000 Buick Lucerne and Cadillac DTS sedans because of faulty power steering hoses.
The hoses on some of the 2006 models of those General Motors cars equipped with V8 engines are prone to separate and leak steering fluid. That could cause drivers to loose steering power at low speeds or trigger engine fires. General Motors will replace the defective parts. Mazda is also recalling about 2,600 MX-5 Miatas from the 2006 model year because the driver-side front air bags are prone to dislodge a horn assembly from the steering wheel. The problem, which is prone to happen at very cold temperatures, could injure drivers. Mazda will replace the front air bags on the cars at risk for the problem.
Market Shares of CompanyToyota Motor Sales USA, American Honda and Nissan North America are all gaining retail market share in early September, according to the Power Information Network (PIN).
Toyota Motor’s retail share is up almost two points from a year ago and sufficient to catapult the company into third place based on this measure. American Honda’s retail share jumped 2.7 points from a year ago and it also gained share versus August. Nissan North America also improved, climbing more than a point from a year ago. In contrast, GM, Ford Motor Company and DaimlerChrysler have all lost retail share versus a year ago, although GM has improved versus this past August. < http://www.aiada.org/article.asp?id=48382>
Debt of CompanyToyota Motor Corp. computed the ratio of earnings to fixed charges by dividing (i) the sum of income before income taxes and equity in net loss of subsidiary and fixed charges by (ii) fixed charges. Fixed charges consist primarily of interest expense net of the effect of noninterest-bearing advances. As of December 31, 2001,TMCC has guaranteed payments of principal and interest on $206 million principal amount of bonds issued in connection with the manufacturing facilities of affiliates in the United States. In addition, as of December 31, 2001, TMCC has guaranteed $95 million principal amount of the debt of Toyota Credit Argentina, S.A. (“”TCA”) and Banco Toyota do Brazil, S.A., two South American affiliates in which TMCC holds a minority interest.
Although TMCC has not incurred any fixed charges in connection with these guarantees and no amount is included in any ratio of earnings to fixed charges, in December TMCC included a charge against income of $31 million to write off its $5 million investment in TCA and to establish a contingency reserve of $26 million, which is the estimate of what TMCC will be required to fund under its $47 million guaranty of TCA’s offshore outstanding debt. For more information, see our report on Form 8-K dated December 28, 2001 and quarterly report on Form 10-Q for the quarter ended December 31, 2001.
Stock Price of CompanyInvestors fix targets for most stocks by estimating future earnings per share and then applying a price-to-earnings “multiple”, also known as the P/E ratio. Companies with the most consistent earnings history or strongest growth prospects receive the highest P/E multiples. We calculate price targets for the current and next fiscal year by applying the stock’s current multiple to the average professional analyst’s estimate. Valuation using TOYOTA MOTOR CORP ‘s current multiple (P/E): |Fiscal Year
Est Low/High Price Range | Avg. Est. Price | % Change for Average | |3/2006 |$108.24-$115.50 |$112.36 |-0.67% | |3/2007 |$113.68-$128.04 |$123.42 |9.11% | |TOYOTA MOTOR CORP current price: |113.12 | |TOYOTA MOTOR CORP current multiple (P/E): |16.50 | | | |TOYOTA MOTOR CORP average 3/2006 estimate: |6.81 | | |TOYOTA MOTOR CORP low 3/2006 estimate: |6.56 | | |TOYOTA MOTOR CORP high 3/2006 estimate: |7.00 | |TOYOTA MOTOR CORP average 3/2007 estimate: |7.48 | | |TOYOTA MOTOR CORP low 3/2007 estimate: |6.89 | | |TOYOTA MOTOR CORP high 3/2007 estimate: |7.76 |
Resource from TOYOTA MOTOR CORP Price TargetGrowth opportunities of CompanyToyota’s basic management philosophy is to benefit society through its business activities, while realizing stable growth founded on a long-term perspective. We will continue operating with an emphasis on capital efficiency, while leading the world market through tireless technological innovation. At the same time, we will further bolster Toyota’s solid operating base to ensure that it remains impervious to the impact of adverse short-term trends.
To achieve these aims, growing in unison with society is vital. We are convinced that a harmonious relationship with the environment, the global economy, local communities, and our stakeholders is key to the realization of long-term, stable growth. In addition to investing aggressively in environmental technologies, which we believe will determine the fate of the automobile industry in the 21st century, we will contribute globally to employment, industry, and the creation of markets around the world. Moreover, the Company will continue its contributions to cultural and social causes, and work to establish an open management system for our shareholders and all of our stakeholders.
Toyota will unrelentingly put these principles into practice and work to increase its corporate value. Our ultimate aim is to create a mutually rewarding bond between ourselves and society, whereby the Company’s growth generates social development and enhances the lives of people around the world。 < http://www.toyota.co.jp/en/ir/reports/annual_reports/02/chairmans/chairmans2.html> Problems of Company
Toyota Motor Corp is focusing efforts on a software problem in the popular hybrid Prius automobile after complaints that the gas-electric hybrid cars stall or shut down without warning while driving at highway speeds. The complaints include 2004 and some 2005 model year cars.
The National Highway Traffic Safety Administration has received 13 reports of the engine shutdowns and some vehicle-information sites have posted complaints about the problem. Some of the malfunctioning Prius cars had to be towed to the shop before they could be restarted. Toyota blames the problem on a software glitch in the sophisticated Prius computer system.http://www.consumeraffairs.com/news04/2005/prius_software.html>
SummaryOver all, Toyota Motor Corp. has good investment opportunity. References“Yahoo Finance” < http://finance.yahoo.com/q/pr?s=TM>“Toyota Company Profile Overview”< http://www.toyota.co.jp/en/about_toyota/overview/index.html> “Toyota on Pace for Record Full-Year Profit.” The Associated Press.
“List of Toyota vehicles”
“GENERAL MOTORS CORP: Milestones”
“Power Information Network Reports: Toyota and Honda Gaining Retail Market Share in Early September” < http://www.aiada.org/article.asp?id=48382>
“Toyota Motor Credit Corporation”
“TOYOTA MOTOR CORP Price Target”
“Toyota’s Evolution Driven by Technological Innovation” < http://www.toyota.co.jp/en/ir/reports/annual_reports/02/chairmans/chairmans2.html>
Prius Problems Traced to Software Glitch< http://www.consumeraffairs.com/news04/2005/prius_software.html>