Toyoda Gosei doubles operating profit on higher Americas sales

Tokyo – Toyoda Gosei has more than doubled its nine-month operating profit due mainly to higher production volumes by its customers in Japan and Americas.

For the nine months to end of December 2023, the Japanese group reported operating profit of Yen56 billion (€345 million), up 136% from Yen24 billion reported for the same period the year before.

Revenue for the nine months increased 14.6% year-on-year to Yen804 billion, helped by an increase in production by customers, said Toyoda Gosei 2 Feb.

The Tokyo-based group linked the stronger operating profit to improved revenue in the Americas, and “efforts on group-wide scale to eliminate loss due to production changes”.

In Japan, revenue increased to 16% year-on-year to Yen335.7 billion due to stronger demand from customers.

Operating profit came in at Yen13.3 billion, up from Yen800 million reported the year before, driven by higher sales and rationalisation efforts.

In Americas, sales increased 20% to Yen288 billion while operating profit grew 146% to Yen22.6 billion, again driven by higher sales and rationalisation efforts.

In Asia, the group reported a 16.7% increase in operating profit to Yen26 billion, on 6.1% higher sales of Yen222 billion.

An increase in production in India helped push up results, despite lower production by customers in China and the ASEAN region.

Europe and Africa returned to growth, posting an operating profit of Yen1.8 billion, up from a loss of Yen1.4 billion reported for the same period last year.

Nine-month revenue in region increased 21.5% to just under Yen26 billion, as customers increased production.

As for the outlook of financial results for the full fiscal year, the group has revised up its full fiscal year forecasts, compared to earlier estimates announced on 31 Oct 2023.

For the year ending 31 March, Toyoda Gosei expects to deliver sales of Yen1.06 trillion, up 4% compared to an earlier forecast of Yen1.02 trillion.

Operating profit is set to come in at Yen70 billion, up 18.6% compared to the previous forecast of Yen59 billion.