Sustained Innovation and Creativity - Toyota Industries Corporation

Net Sales ofTextile MachinerySegmentOperating Income (Loss)of Textile MachinerySegmentNet Sales ofOthers SegmentOperating Income ofOthers Segment(Including Elimination ofIntersegment Transactions)(¥ Billion)(¥ Billion)(¥ Billion)(¥ Billion)503806402605301440320100(1)20210FY0203 0405 06(2)FY0203 0405 060FY02030405060FY0203040506safeguards exercised by Europe and the United States tocontain Chinese garment imports.Net sales of the Textile Machinery Segment of ToyotaIndustries totaled ¥49.8 billion, an increase of ¥5.9 billion(13.4%) from fi scal 2005, due largely to an increase in salesof air-jet looms to China and India as well as strong salesof spinning machinery.Others SegmentBecause we separated our logistics-related businessesfrom the Others Segment into the Logistics Segment, netcomparisons with the previous year’s results cannot bemade. Net sales of the Others Segment for fi scal 2006amounted to ¥49.0 billion.TIBC Corporation (TIBC), a joint venture with IbidenCo., Ltd. that manufactures and sells ball grid array plasticpackage substrates, underwent strong demand for plasticpackage substrates for personal computers.Sales by Geographical SegmentBelow are Toyota Industries’ operating results bygeographical segment. Net sales for each geographicalsegment do not include intersegment transactions.JapanNet sales increased ¥194.3 billion (23.8%) over fi scal 2005to ¥1,009.4 billion, while operating income totaled ¥52.8billion, up ¥9.2 billion (21.1%). These increases are duemainly to a rise in unit sales of vehicles and lift trucks.North AmericaNet sales totaled ¥246.1 billion, an increase of ¥33.9 billion(16.0%) over fi scal 2005. Operating income was ¥6.7 billion,up ¥0.4 billion (6.4%). Both increases were the result of anincrease in unit sales of lift trucks.EuropeNet sales increased ¥27.6 billion (14.6%) to ¥216.2 billion,due largely to an increase in unit sales of lift trucks. Onthe other hand, operating income decreased ¥0.1 billion(3.0%) to ¥4.5 billion, mainly as a result of a decrease inearnings of car air-conditioning compressor manufacturingsubsidiaries.OthersNet sales totaled ¥34.2 billion, an increase of ¥8.7 billion(33.8%), whereas operating income rose ¥0.8 billion(131.6%) to ¥1.5 billion.Non-Operating Income and ExpensesNon-operating income increased ¥5.6 billion (14.6%) to¥43.9 billion in fi scal 2006, owing primarily to an increase individends income from TMC.Non-operating expenses totaled ¥27.3 billion, anincrease of ¥6.8 billion (33.0%), due mainly to increases ininterest expenses and a loss on disposal of fi xed assets.Income before Income TaxesIncome before income taxes amounted to ¥80.6 billion,up ¥10.3 billion (14.6%), as a result of a ¥9.7 billion increasein ordinary income.Income TaxesIncome taxes increased ¥6.1 billion (27.2%) to ¥28.3billion, due largely to an increase in income taxes of theCompany and the BT Industries Group.Minority Interest in Consolidated SubsidiariesMinority interest in consolidated subsidiaries amountedto ¥5.3 billion, up ¥0.5 billion (10.7%), as a result of strongperformance by subsidiaries.Toyota Industries Corporation Annual Report 200667