Here are the first two paragraphs of Toyota Motor Corporation's press release announcing its financial results for the year ended March 31, 2009 (most Japanese companies end their fiscal years on March 31; bolds are mine):
Tokyo - TOYOTA MOTOR CORPORATION (TMC) today announced operating results for the fiscal year ended March 31, 2009.
On a consolidated basis, net revenues for the fiscal year ended March 31, 2009 totaled 20.53 trillion yen, a decrease of 21.9 percent compared to the last fiscal year. Operating income decreased from 2.27 trillion yen to a loss of 461 billion yen, and income before income taxes, minority interest and equity in earnings of affiliated companies was a loss of 560.4 billion yen. Net income decreased from 1.72 trillion yen to a loss of 437 billion yen.
Across the board, the financial press reports I read translated the company's reported losses expressed in yen into dollars ($4.4 billion in $US for the year, and $7.7 billion in the fourth quarter), but not its revenues (about $207 billion and $35 billion, respectively).
Why is that?
It may have something to do with the fact that Toyota, despite its considerable recent troubles, especially during most recent quarter, is leaving rivals Ford and General Motors in the rear-view mirror. That certainly distracts from the bailout blather about how GM's and Chrysler's crises were "unavoidable."
Just two years ago, Toyota passed GM and became the world's largest carmaker. In the most recent quarter, Toyota's top line far exceeded Ford's and GM's ($24.8 billion and $22.4 billion, respectively).
If the fact that Ford outsold GM in the first quarter of 2009 is news to you, you're not alone. The press has ignored the fact that Ford leapfrogged GM in the first quarter to become Number One in Detroit.
As to Toyota's results, despite the figure's presence in yen in the first sentence of its press release, none of the half-dozen reports I reviewed translated the company's revenues into dollars:
- Dow Jones translated the company's quarterly and annual net losses. While it noted final-quarter revenues in yen, it didn't translate the number.
- MarketWatch also translated the company's losses, and not its revenues.
- AFP only noted that Toyota's "revenues slumped 21.9 percent" for the year, and laugably claimed (as did MarketWatch) that "Toyota fared even worse in the quarter to March than General Motors, which said Thursday it lost six billion dollars." GM's quarterly loss was about 27% of sales; Toyota's historic loss was about 22%. GM burned through $10.2 billion in cash during the quarter. Toyota also happens to have about $30 billion in cash and cash-equivalents on hand, $8 billion higher than a year ago.
- The UK Telegraph noted a decline in unit sales, but did not deal with revenues.
- A BreakingViews.com story carried at CNNMoney.com did not mention revenue dollars, but did uniquely point to the company's stash of cash, and reminded readers that "Toyota is in much better shape than General Motors."
- A New York Times report by HIroko Tabuchi noted annual sales, but only in yen, while translating the company's quarterly and annual net losses.
While there's no denying that the largest loss in the 72-year history of the company is big news, it's hard to believe that the growing disparity between its sales volume and that of its rivals is not. Maybe it will be news if, as seems pretty likely, Toyota outsells Ford and GM combined within the next few years.
Cross-posted at BizzyBlog.com.
—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters
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Comments Policy
It's no surprise to anybody
May 10, 2009 - 08:32 ET by PewahIt's no surprise to anybody in the automotive industry that the main Japanese players, Toyota, Honda, and Nissan are not only going to weather this storm, but will come out on the other end healthy and ready to chew up more U.S. market share than ever. It will be interesting to see how the Obamites will attempt to counter this with taxes and/or regulation, so that their supporters over at UAW headquarters can continue their tradition of mediocrity within the automotive companies they have recently stolen from the American taxpayers.
Yum....
May 10, 2009 - 12:30 ET by SRPwrdNissan and Honda.....
"I believe in American Exceptionalism, just like Brits believe in British Exceptionalism and Greeks believe in Greek Exceptionalism." - PreBO, 4/4/09
Question Tom-
May 10, 2009 - 08:53 ET by BKeyserCan someone come up with the number of laid-off GM employees (white-collar and union, separately) compared to the number of laid-off Toyota employees (white-collar and factory workers, separately, both in the US and Japan)? Just as another way to compare the two since the media doesn't present an accurate depiction. My thought here is that combined with the billions of taxpayer money burned by GM, the continued drag on the the economy by the number of laid-off employees (though I'm sure the UAW folks are drawing on UAW funds during this time and not State Unemployment, right?), and red bank accounts, Toyota shouldn't even be in the same sentence as GM. Oh, and can you also add in the total number of GM, Lexus, Scion (and however many other subsidiaries) trucks and SUV's were sold over the last year compared to GM's?
I think a matrix with this data would depict a more even keel comparison of the two giants. Maybe some really smart guy could come up with a "drag on the economy" quotient...
Toyota ....
May 10, 2009 - 09:19 ET by Tom Blumer.... hasn't laid off employees in Japan yet, where the lifetime employment concept still holds. They're only at the point of "firing" temps. In the US, the numbers are very low if they exist.
IOW, there's no comparison between GM/Chrysler's tens of thousands of layoffs and Toyota's minimal numbers.
Your point about "drag on the economy" is a good one.
Re GM/Xler
May 10, 2009 - 09:07 ET by slickwillie2001Foreign carmakers stand to make tremendous gains in the USA and all they have to do is what they've been doing because Chrysler and GM will continue to fail. The UAW cares as much about making cars as the teacher's unions care about educating children; in both cases those are not their priorities. I expect similar results.
The added burden of government management at GM and Chrysler will further encumber them. The government will force them to make cars that the government likes rather than what consumers want. Consumers will also be very unwilling to buy a 'Government Motors' car.
But what about Ford? So many unasked and unanswered questions about Ford. How can the UAW be expected to work with Ford when they own the competition? Is it even legal for the UAW to represent the workers at one company when they own the competition? Will the Bamster launch an attack on Ford or the other non-government companies in order to level the playing field?
in the interest of fairness
May 10, 2009 - 09:22 ET by katainkentall earnings will now be reported by Industry and not by company.
Hold on ‘cause the world will turn if you're ready or not ~ KT Tunstall