TOYOTA MOTOR CO. ADRs $76 (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.6 billion; Market cap: $121.6 billion; Price-to-sales ratio: 0.6; WSSF Rating: Above Average) is the world’s largest carmaker. Japan accounts for 47% of its revenue, followed by North America (24%), Europe (12%) and Asia (10%). In the fiscal year ended March 31, 2009, Toyota sold 7.6 million vehicles, down 15% from 8.9 million in the prior year. As a result of the drop, Toyota lost $4.3 billion, or $2.55 per ADR, in fiscal 2009. (Each American Depositary Receipt represents two of Toyota’s common shares.) It earned $17.5 billion, or $8.77 per ADR, a year earlier. Revenue fell 9.1%, to $203.3 billion from $223.6 billion. Toyota’s sales will likely fall to 6.5 million vehicles this year. The company is lowering its costs in response. For example, its smaller cars will share the same platform and parts by 2012. That should save $1 billion a year. Toyota will likely lose $2.23 per ADR in fiscal 2010, but could earn $3.05 per ADR in the following year. The company has cut its dividend by 30%. The new annual rate of $1.42 yields 1.9%. Toyota is a hold.
TOYOTA MOTOR CO. ADRs $76 - New York symbol TM
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