Toyota Australia Reports First Profit in Three Years

Toyota Australia ends three years of losses, reporting a profit of A$220.9 million ($206.5 million) for the fiscal year ended March 31.

After-tax profit was A$149.1 million ($139.7 million) as revenue jumped 23% to A$8.9 billion ($8.3 billion).

Toyota received A$72 million ($67.3 million) in grants from federal and state governments.

The auto maker reported a A$33 million ($30.8 million) loss in the prior year.

Australian sales of the Toyota and Lexus brands climbed 20% to 225,599 units in the fiscal year, which the auto maker attributes to the return to full production following the impact of the Japan earthquake and tsunami in 2011 and Thailand floods in 2012. The twin disasters limited the supply of vehicles and parts.

Toyota Australia’s vehicle production rose 7.1% to 99,441 units, with 69,676 vehicles exported to the Middle East, New Zealand and the South Pacific Islands.

Toyota Australia President and CEO Max Yasuda says the auto maker is 15 months into a 5-year plan developed in response to external challenges including the high Australian dollar, intense market competition and high cost of materials.

The main objective of the plan is to secure a solid foundation for future growth in Australia, and Yasuda says the financial results show transformation progress is on track, but more work needs to be done to achieve challenging targets.

“Our business is being radically changed to counter both internal and external pressures impacting us,” Yasuda says. “We are doing everything we can to strengthen Toyota Australia and ensure our long-term future in this country as an importer and manufacturer.”

Toyota has its model mix just right, he says. “Last year we introduced three brand new vehicles – the Prius c, Prius v and the 86 sports car – along with many next-generation vehicles, all of which appealed to Australian customers.

“Our locally built Camry, Camry Hybrid and Aurion vehicles continue to sell well in both domestic and export markets…with the Camry being the best-selling vehicle in its segment for 19 years in a row.”

Toyota opened a new A$330 million ($308.7 million) engine plant late last year, becoming the first Australian manufacturer to produce both gasoline and hybrid engines. “This has opened new export opportunities with Thailand and Malaysia and allowed us to enhance our local manufacturing capabilities,” Yasuda says.

A Toyota spokeswoman tells Melbourne’s The Age newspaper the auto maker intends to produce cars in Australia beyond 2016, when its 5-year strategic plan ends. “If we continue to reach all of our targets, we would hope to be manufacturing for many decades,” she is quoted as saying.

Ford Australia recently reported a A$141 million ($131.9 million) loss for 2012 and announced plans to end local production in 2016. GM Holden reported a A$153 million ($143.2 million) loss.