Toyota Australia Profits as End of Production Looms

Toyota Australia reports after-tax earnings of A$99 million (US$75.4 million) for the year ending March 31, down 58% from the prior-year’s A$236 million ($179.7 million) profit as the costs of ending local production took a bite.

The company says it took a writedown of A$131 million ($99.8 million), up from A$81 million ($61.7 million) a year earlier in restructuring costs for its move to end manufacturing and consolidate its corporate operations by the end of 2017.

As well as higher restructuring costs, the profit was impacted by adverse foreign exchange in export markets compared to the prior year.

Toyota has announced it will shutter its Altona manufacturing plant in Victoria on Oct. 3. It will stop building Aurion vehicles in August, Camry Hybrids in September and Camry gasoline models in October.

The factory will continue operating on two shifts until the closure date, when the number of Australian employees will drop from 3,900 to about 1,300.

The head office will continue to be based in Melbourne and corporate functions in Sydney will be moved to Melbourne.

“The company is well progressed in its transition to a sales and distribution company and will continue to be a strong force in the Australian marketplace,” Dave Buttner, president-Toyota Australia, says in a statement.

Toyota says it sold 209,995 Toyota and Lexus vehicles in Australia and exported 55,445 units during the 2016-2017 financial year.

Lexus achieved record sales of 9,096 units, 0.4% better than the previous record set in the 2015-2016 financial year.

The locally built Camry continued as Australia’s best-selling midsize car since 1994. “Our manufacturing team members have worked diligently to ensure that our last Camry will be our best one yet,” Buttner says.