Review of Operations
The performance of Toyota Industries’ business segments varied for fiscal 2002. The Materials Handling Equipment Segment and theAutomobile Segment showed year-on-year increases in sales due to the acquisition of BT Industries AB (“BT Industries”) in June 2000 and astrong performance by the Car Air-Conditioning Compressor Business. On the other hand, the Textile Machinery Segment and the Others
Segment saw sales decrease. The operating income of some businesses decreased from fiscal 2001, but overall Toyota Industries
maintained the fiscal 2001 level. An overview of fiscal 2002 by segment follows.
Note: Segment net sales figures do not include intersegment transactions. However, segment operating income figures do include operating income arising fromintersegment transactions. U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥133.25=US$1, the approximate exchange rateon the Tokyo Foreign Exchange Market on March 29, 2002.

Automobile Segment(exported as the Corolla Wagon. Discontinued in the first halfThis segment consists of vehicle (automobile assembly),of fiscal 2003). Although the assembly of the RAV4 and bBengine, car air-conditioning compressor and other businesses

Open Deck began in fiscal 2002, sales of the Vitz (Yaris), our(including foundry parts and electronic components formainstay vehicle, decreased due to TMC’s commencement ofautomobiles).

production of this model in Europe and the ruthless domestic

Net sales amounted to ¥563.6 billion (US$4,229.6 million),competition in the compact car market.

up 23.2% over fiscal 2001 and accounting for 57.5% of total

Total Vehicle Business production for fiscal 2002 was

net sales of Toyota Industries. The increase was due mainly to247,000 units, down 29,000 from fiscal 2001. Sales of thea rise in sales of car air-conditioning compressors and the fact

Vehicle Business amounted to ¥280.1 billion (US$2,102.3

that Toyota Motor Corporation (“TMC”) started charging formillion), up 43.0% over fiscal 2001. Approximately half of thisengines and other parts for automobiles we assemble thatincrease, ¥67.5 billion (US$506.6 million), was due to the fact

had previously been supplied free. Operating income wasthat Toyota Industries now pays for parts previously supplied¥29.0 billion (US$217.3 million), up 1.5%.

free by TMC and recoups an identical aggregate amount in
the form of increased unit prices to TMC.

Net Sales of
the Automobile Segment

Operating Income of
the Automobile Segment(¥ Billion)(¥ Billion)

60030Engine BusinessWe produce gasoline and diesel engines for TMC vehicles andfor our own line of forklift trucks and other industrial vehicles.
For fiscal 2002, gasoline engine production totaled 172,000
units, a decrease of 11,000 from fiscal 2001. Though theproduction of the 2UZ gasoline engine from August 2000
made an excellent contribution to the total, production of 5E

400

20gasoline engines for automobiles and 4Y gasoline engines forindustrial vehicles decreased. Production of diesel engines
totaled 212,000 units, up 42,000. Production of 2000cc-class20010C-type diesel engines for automobiles decreased. This was
outweighed by an increase in production of 1CD 2000cc
direct injection turbo diesel engines with a common rail fuel

0
FY 98

99 00 01 020
FY

98 99 00 01 02

system. Total engine production was 384,000 units, up 31,000
from fiscal 2001.
In April 2001, Toyota Industries absorbed TMC’s Industrial

Vehicle Business

Equipment Sales Division. Sales of engines for forklift trucks

We currently assemble four models in the TMC lineup: Vitz

are now all intersegment transactions. Previously, we sold(Yaris in Europe), TMC’s strategic compact car; RAV4 compact

forklift engines to TMC, which were then supplied to us for

sport utility vehicle; bB Open Deck; and Sprinter Carib

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2002

37

Review of Operations
production of forklift trucks. Excluding intersegment sales,

production of car air-conditioning compressors. Toyota

sales of gasoline engines and diesel engines totaled 148,000

Industries now takes the lead in product development andand 194,000 units, respectively. On the same basis, total engine

manufacturing, while DENSO undertakes sales and limited

sales amounted to 342,000 units, down 11,000 from fiscal

manufacturing operations. Toyota Industries is taking over2001.

production of car air-conditioning compressors at DENSO’sNet sales excluding intersegment sales totaled ¥114.9

Toyohashi Plant in Japan. Overseas, production will be sharedbillion (US$862.1 million), an increase of 12.5%, reflecting abetween the two companies on a country-by-country basis.

higher ratio of value-added products and consequent increasein the average unit sales price.

Materials Handling Equipment Segment
Car Air-Conditioning Compressor Business

The Materials Handling Equipment Segment manufactures andCar air-conditioning compressors developed andsells forklift trucks, warehouse trucks and materials handling

manufactured by Toyota Industries are marketed to theleading auto manufacturers worldwide through DENSO

systems such as automated storage and retrieval systems, andautomatic guided vehicle systems.

Corporation (“DENSO”). Sales of car air-conditioning
compressors in the domestic market remained strong.
Overseas, increased orders and stable car sales in Europe

Net Sales ofthe Materials Handling
Equipment Segment

Operating Income of
the Materials Handling
Equipment Segment

fiscal 2001. Overseas, we sold 8.7 million units, up 788,000.

(¥ Billion)(¥ Billion)

Total unit sales amounted to 13.8 million, up 1.2 million.

400

15

worked to our advantage. Orders increased in North America
as well. In Japan, we sold 5.1 million units, up 436,000 over300

Car Air-Conditioning
Compressor Unit Sales

10200(Million Units)
155100100FY98 99 00 01 020FY98 99 00 01 02

5Net sales of the Materials Handling Equipment Segment

0FY

98 99 00 01 02

JapanNorth AmericaEuropeAsia and Oceania

totaled ¥353.0 billion (US$2,649.5 million), an increase of 49.3%
over fiscal 2001. Operating income was ¥13.4 billion (US$100.3million), down 8.1%, due mainly to a one-time amortization ofgoodwill in an amount of approximately ¥2.1 billion (US$15.6million) following the acquisition of TMC’s Industrial

Net sales totaled ¥153.1 billion (US$1,149.1 million), up
9.7% over fiscal 2001.

Equipment Sales Division in April 2001.
The substantial increase in sales reflected two major factors.

In May 2001, in order to enhance the efficiency andFirst, in June 2000 Toyota Industries acquired BT Industries, atherefore global competitiveness of operations in this area,leading warehouse truck manufacturer based in Sweden. BT

Toyota Industries and DENSO agreed to integrate their

Industries’ sales were consolidated in Toyota Industries’ results

38

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2002

for the full fiscal year, whereas they were consolidated only for

Textile Machinery Segment

the second half of fiscal 2001. Second, in April 2001 TMC

This segment comprises the Spinning Machinery Business,transferred its Industrial Equipment Sales Division to Toyota

with the manufacture of ring spinning frames at its core, andIndustries, which accounted for approximately ¥27 billion

the Weaving Machinery Business, based on the manufacture(US$202 million) of the increase in net sales.

of air-jet looms. Toyota Industries is a world leader in the air-In the forklift truck business excluding BT Industries, sales
were down in North America but up in Europe. In thejet loom and spinning machinery fields.
Net sales of the Textile Machinery Segment amounted todomestic market, sales of our exhaust-free GENEO-B (7FB¥30.7 billion (US$230.4 million), a decrease of 7.6% from fiscaloutside Japan) electric counterbalanced forklift truck

2001. Despite aggressive organizational reform, decreased

continued strong, supported by good demand forsales resulted in an operating loss of ¥0.4 billion (US$2.9

environment-friendly vehicles. The GENEO-R (7FBR outsidemillion). The export ratio in this segment is very high, andJapan) electric reach trucks, launched in January 2001 mainlyexports, mainly to Asia, accounted for approximately 93% offor the Japanese market, and the High-Pick Lift (7FBPR andtotal net sales for fiscal 2002.

7FBP) electric order picking trucks, marketed in October 2001,
also contributed to total sales.
Sales of materials handling systems, which comprise

Net Sales of
the Textile Machinery
Segment

Operating Income (Loss) of
the Textile Machinery
Segment

substantially, contributing to the overall good performance of(¥ Billion)(¥ Billion)

this segment. BT Industries’ orders received were slightly up401

automatic guided vehicle systems and automated storage
and retrieval systems for the domestic market, increased

over fiscal 2001. Orders received in Europe remained steady,but orders received in North America showed a large

030

decrease due to the adverse economic environment. On the(1)other hand, BT Industries’ sales registered a double-digit
percentage increase over fiscal 2001, with sales in Europe

20(2)continuing strong and sales in North America slightly up,
reflecting order backlogs at the beginning of 2001. However,10(3)since sales in North America for fiscal 2002 exceeded orders
received, the order backlog decreased.
The Materials Handling Equipment Segment also0FY 990001(4)
FY02

9900

0102

manufactures and sells tow tractors, shovel loaders, sweepers
and other industrial equipment. As a result of our acquisitionof TMC’s Industrial Equipment Sales Division in April 2001, we

Spinning Machinery Business

now undertake comprehensive materials handling

Although exports to Uzbekistan decreased, sales inequipment operations, from design through production toBangladesh increased on the back of vigorous sales activities.

sales and marketing. This puts us in an even better position toAs a result, net sales of the Spinning Machinery Businessdeliver high levels of customer satisfaction.

totaled ¥12.3 billion (US$92.1 million), up 3.7% over fiscal

Note: Toyota Industries consolidated BT Industries’ operating results from thesecond half of 2000. The year-on-year comparative information on BT
Industries’ orders and sales is for reference only.

2001.

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2002

39

Review of Operations
Net sales of the Others Segment totaled ¥32.8 billion

Weaving Machinery Business
Sales of air-jet looms totaled 3,322 units, a decrease of 1,256(US$246.3 million), down 18.0% from fiscal 2001. This was duefrom fiscal 2001. Sales in India increased, but were down into the adverse impact of the worldwide IT crash on theChina, Indonesia, South Korea and Taiwan. Sales of water-jetElectronics Business, including TIBC. Sales of press dies andlooms, at 1,225 units, showed a slight increase. Sales in China

production equipment also decreased. Operating income wasincreased, but decreased in South Korea and the U.S. Net sales¥4.5 billion (US$33.6 million), up 2.7%, due mainly toof the Weaving Machinery Business totaled ¥18.4 billion

improved profitability of businesses other than the(US$138.4 million), down 13.9% from fiscal 2001.

Electronics Business.
Note: ST-LCD is not consolidated but is accounted for by the equity method inToyota Industries’ consolidated financial results. Its operating income(loss) is not included in the operating income (loss) for this segment.

Others Segment
This segment, currently relatively small, comprises mainly newbusinesses that have outstanding growth potential. A corebusiness in this segment is ST Liquid Crystal Display Corp.
(“ST-LCD”), a joint venture that we established with Sony
Corporation in 1997. ST-LCD manufactures low-temperaturepolysilicon TFT-LCDs, expected to be the next-generation LCD.
TIBC Corporation (“TIBC”), a joint venture with Ibiden Co., Ltd.
established in 1998, is another core business within thissegment. TIBC manufactures ball grid array (BGA) plastic
package substrates for IC chipsets, and flexible printed circuit(FPC) substrates for smart cards. This segment also includes
the manufacture and sales of press dies and production
equipment, and other businesses.

Net Sales of
the Others Segment

Operating Income of
the Others Segment(Including Elimination ofIntersegment Transactions)(¥ Billion)(¥ Billion)

50

540

430

320

210

10FY

4098 99 00 01 020FY

98 99 00 01 02

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2002