Automotive slowdown impacts Toyoda Gosei results

Tokyo – Toyoda Gosei has been its results impacted by lower automotive production globally, with operating profit declining sharply for the first nine months of fiscal year 2024 (ending 31 March).

For the nine-month period, the Japanese group posted operating profit of Yen41 billion (€257 million), down 15.8% compared to 2023.

Sales for the first three quarters were down 2.1% year-on-year at Yen787 billion, the automotive parts and safety systems supplier reported 31 Jan.

Toyoda Gosei linked the decline in operating profit to lower volumes and higher wages, despite the positive effects of its ongoing rationalisation plan and the depreciation of the yen.

In Japan, revenue was down 3.1% year-on-year at Yen325.3 billion, owing mainly to production cuts by OEMs. Segment profit fell 28% to Yen9.6 billion, chiefly due to lower sales and higher fixed costs.

In Americas, sales dropped 3.1% year-over-year to Yen297.2 billion despite the depreciation of the yen offsetting OEM production cuts. 

Segment profit fell 8.7% to Yen20.7 billion due mainly to lower sales volume and salary increases.

In Europe and Africa, Toyoda Gosei said it was again impacted by a decline in client production volumes and reported a 6.1% drop in sales to Yen24.3 billion.

Segment profit, however, was up 11.4% year-on-year at Yen2.0 billion, buoyed mainly by the group's rationalisation programme.

Significant production cuts, mainly by Japanese OEMs, also impacted margins in China, where the group posted a 78.5% decline in segment profit at Yen1 billion, on 20% lower sales of Yen74.5 billion.

In Asia, meanwhile, despite production cutbacks by Japanese OEMs in Thailand, the group “performed well” in Indonesia and other countries and secured almost the same level of profit as the previous year.

By contrast, the group posted a 24% rise in sales to Yen31.1 billion and a 38% increase in profits to Yen3 billion in India, helped by increased OEM production.