Toyota Motor (TM - Free Report) posted fiscal fourth-quarter 2020 earnings of 45 cents per share against the Zacks Consensus Estimate of a loss of a penny. However, the bottom line compared unfavorably with the year-ago earnings of $2.89 a share. Consolidated revenues came in at $65,190.6 million, surpassing the consensus mark of $63,257 million. Nonetheless, the top line declined 7.3% year over year. Depressed demand for vehicles and weak consumer sentiment amid the COVID-19 pandemic resulted in weaker year-over-year results for the Japan-based auto biggie. Sales and earnings of other auto biggies like Honda (HMC - Free Report) , General Motors (GM - Free Report) and Ford (F - Free Report) also declined in the last reported quarter, hit by coronavirus woes.
All the figures mentioned below are U.S. GAAP based.
The Automotive segment’s net revenues fell 7.2% year over year to ¥6.4 trillion ($58.8 billion) in fourth-quarter fiscal 2020. Operating income also decreased 10.3% year over year to ¥352 billion ($3.2 billion).
The Financial Services segment’s net revenues declined 0.3% from the prior-year quarter to ¥547.9 billion ($5.02 billion). The segment incurred operating loss of ¥8.3 billion ($76.1 million) against operating income of ¥85.1 billion recorded in fourth-quarter fiscal 2019.
All Other businesses’ net revenues slipped 41.7% from the year-ago period to ¥300 billion ($2.7 billion) in the quarter under review. Further, operating income declined 29.9% year over year to ¥35.5 billion.
Fiscal 2020 Highlights
In fiscal 2020, consolidated vehicle sales totaled 8,958,423 units, marking a decrease of 18,372 units from fiscal 2019. The automaker’s vehicle sales in North America and Asia also marked a decline. However, sales in Japan, Europe and Other regions (consisting of Central and South America, Oceania, Africa, and the Middle East) rose from the year-ago period.
During the fiscal year, Toyota’s revenues declined 1% year over year to ¥29.9 trillion. However, the company’s operating income declined 1% year over year to ¥2.4 trillion. Unfavorable currency translations and lower revenues amid coronavirus woes dented the results.
Toyota had cash and cash equivalents of ¥4.2 trillion ($39 billion) as of Mar 31, 2020. Long-term debt amounted to ¥10.7 trillion ($99.4 billion). At the end of fiscal 2020, operating cash flow was ¥3.6 trillion, down 4.6% year over year.
Fiscal 2021 Guidance
For fiscal 2021, Toyota expects consolidated vehicle sales of 7 million units, representing a decline from fiscal 2020 levels. The auto giant expects coronavirus to deal a major blow to earnings and sales in fiscal 2021. Toyota expects operating income to decline 79.5% year over year to ¥500 billion, which would mark the lowest profit in nine years. Sales are expected to total ¥24 billion, indicating a 19.8% decline from fiscal 2020 levels. Despite the gloomy scenario and bleak profit and sales forecast, the Zacks Rank #4 (Sell) company intends to spend more than ¥1.1 trillion in R&D expenses, which suggests almost no change from fiscal 2020 levels.
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