Toyoda Gosei reports rebound in European sales, profits

Tokyo - Automotive components supplier Toyoda Gosei (TG) has reported improvements in both sales and earnings at its European operation during the second quarter of its fiscal year.

Group-wide, however, the Japanese manufacturer saw sales and operating profit decline over the period, on lower global demand and production cuts by vehicle makers.

For the quarter ended 30 Sept, operating profit declined 14.3% year-on-year to Yen29 billion (€175 million) on 1.3% lower sales of Yen516 billion, TG reported 31 Oct.

The group linked the fall in profits to 'production cuts by major automotive customers outside of India, especially in Japan, the Americas, and China.'

In terms of sales, TG reported mixed trends across the main global regions, with year-on-year increases in Europe and the Americas, but declines in China and elsewhere in Asia.

In its Europe and Africa region, sales were up 5.7% year-on-year over the three-month period to Yen16.5 million while operating profit more than tripled to Yen1.5 billion.

TG linked the improved performance to streamlining efforts, passing through of material costs as well as exchange rate effects, despite lower car production in the region.

In the Americas, revenue was up 4.8% year-on-year at Yen200 billion while operating profit fell 1.7% to Yen14.3 billion.

Here TG said vehicles production by customers decreased but revenue was up due to weaker yen. The decline in profits, it added, was small due to rationalisation efforts.

In Japan, sales fell 7.4% year-on-year to Yen200 billion, while operating profit declined 40% to Yen4.9 billion due to lower sales.

Sales in China declined by 20% year-on-year to Yen47 billion, due to lower production by major automotive customers. Operating profit for the region declined significantly by 92% to Yen195 million due to lower sales.

Asia also witnessed a 2.7% year-on-year decline in second-quarter sales to Yen65.7 billion, while operating profit fell by 12% to Yen5.8 billion due largely to lower car production in Thailand.

India was the only region to report increased automotive production, with TG increasing second quarter sales by 23% to Yen20.4 billion and operating profit by 30.6% to Yen1.8 billion.