Toyota's New Prius Creates a Frenzy - Analyst Blog
June 07 2011 - 10:15AM
Zacks
Toyota Motor Corp. (TM) has decided to boost
monthly output of its new Prius hybrid wagon, Prius Alpha, to about
70% above its initial target due to escalating orders for the
vehicle. The automaker will raise monthly output to 5,000 units
from 3,000 units to shorten the waiting period for the
customers.
Prius Alpha is a hatchback wagon that is derived from the third
generation Prius model. It features over 50% more cargo space
compared with its predecessor and boasts of a fuel economy of
42 miles per gallon (mpg) in the city and a 38 mpg on the
highway.
The 5-seater version of Prius Alpha, Prius V, was debuted in
Japan on May 13. Priced at ¥2.35 million ($29,000), the vehicle is
equipped with nickel-metal hydride (NiMH) batteries like its
predecessor.
Toyota plans to start selling Prius V in North
America within a year. It also plans to sell the 7-seater
version of Prius Alpha in Europe as Prius+ in mid-2012.
Prius+ will be priced at ¥3 million ($37,000) in Japan. It will
be equipped with lithium-ion (Li-on) batteries that take less
space, allowing for more cabin room. Li-on batteries will be used
for the first time in a Toyota hybrid. The automaker intends to
sell 2,000 units of the new Prius per month in North America and
2,000 units per month in Europe.
Toyota, a Zacks#3 Rank (Hold) stock, posted a profit of ¥408.18
billion ($5.07 billion) or ¥130.16 ($1.60) per share for its fiscal
2011, ended March 31, 2011, that almost doubled from ¥209.46
billion or ¥66.79 per share a year ago.
The increase in profit was attributable to positive impact of
¥490.0 billion due to marketing efforts and ¥180.0 billion due to
cost reduction measures, partially offset by a negative impact of
¥110.0 billion due to the earthquake in Japan and ¥290.0 billion
due to unfavorable exchange rates.
Consolidated revenues in the fiscal year rose marginally by
0.23% to ¥18.99 trillion ($235.80 billion) from ¥18.95 trillion,
driven by a growth in unit sales in Asia (28%) and Other regions
(15%), offset partially by a decline in unit sales in Japan
(11.5%), North America (3%) and Europe (7%). Total unit sales
increased 0.98% to 7.31 million units during the fiscal year.
Meanwhile, Toyota’s domestic competitor, Honda Motor
Co. (HMC) revealed a 38% fall in profit to ¥44.55 billion
($536 million) or ¥24.72 per share (30 cents per share) in the
fourth quarter of the fiscal year ended March 31, 2011 from ¥72.18
billion or ¥39.78 per share in the same quarter of prior fiscal
year.
The decline in profit was attributable to unfavorable currency
translation effects, higher selling, general and administrative
expenses and the natural calamity in Japan. These more than
offset the positive impact from cost reduction measures, lower
R&D expenses, increase in sales volume (except in the
Automobile segment) and model mix, and operating
income made based on licensing agreements.
HONDA MOTOR (HMC): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
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