Toyota Australia Turns 2014 Loss Around With $194 Million Profit

Toyota Australia has posted its second profit in six years with the carmaker in the black for 2014/15 to the tune of $194 million.

This follows a record $437 million loss for 2013/14, largely a result of asset writedowns following the company’s decision to exit the Australian manufacturing scene.

Much of last year’s loss came from costs incurred as Toyota looks to wind up its Altona manufacturing facility, and the carmaker spent a further $66 million this year on the restructuring process.

The carmaker says effective cost management and strong sales have led to the turnaround for 2014/15, but warns more financial pain will be incurred in the run up to 2017 when local manufacturing of its Camry and Aurion models will cease.

Further asset write-downs and redundancy payments will make up the bulk of the expenses, but for now Toyota is patting itself on the back for a successful financial year (Japan’s financial year, which ends on March 31).

“Despite some difficult announcements during the past 12 months, our employees have continued to be committed and passionate,” Toyota Australia President, Dave Buttner, said. “It’s been extremely pleasing to see everyone working together, especially as the company prepared for last month’s launch of the new-look Camry.”

Mr Buttner said the locally-built Toyotas were strong sales performers during the last financial year, with the Camry in particular dominating the medium car segment.

The Aurion however, much like the other offerings in the large car segment in Australia, has fallen from favour somewhat in the last two years.

Aurion sales were down 16.4 percent in May on the same month last year – which in itself was down 38.3 percent on May 2013 – and down 12.1 percent for the year to date.

This raises the question of whether Toyota will replace the Aurion post-2017, but the carmaker has yet to comment on the issue.

Fellow local carmaker Ford recently announced a loss for the 2014 calendar year of $191 million.

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