To Our Shareholders

Our Millennium Year Begins with
Outstanding Performance
At Toyoda Automatic Loom Works, Ltd. (TOYODA), strong
financial performance marked the first half of the fiscalyear ending March 31, 2001 (April 1, 2000 – September
30, 2000).
TOYODA’s sales and profits during the first half of thefiscal year increased substantially over the same periodof the previous year. Consolidated net sales rose 18.2%,
to ¥344.2 billion (U.S.$3,187.3 million), the highest sales
recorded in our corporate history for an interim period.
Consolidated operating income jumped 83.4%, to ¥21.5billion (U.S.$198.9 million), the highest such operating
income ever recorded. Consolidated net income climbed
61.2%, to ¥8.0 billion (U.S.$73.6 million).

Akira Yokoi
Vice Chairman

Tadashi Ishikawa
President

Chisei Isogai
ChairmanIn the first half of the fiscal year, the Japanese
economy showed some indications of recovery. The

Automobile Segment

U.S. economy remained strong, the European economy

TOYODA’s automobile-related business includes automobile

expanded steadily, and in Asia economic recovery wasassembly and the production of engines, car air-conditioning

unmistakably on track. While these favorable global

compressors, and other related components. The Automobile

economic conditions certainly helped our business

Segment boasts the largest sales at TOYODA and makes

expand, optimization strategies in each of our diversified

up 66.5% of our net sales on a consolidated basis. Sales in theoperations and cost reduction measures across theAutomobile Segment rose 15.9% over the same period asboard were the keys to the double-digit increases ina year earlier, to ¥228.8 billion (U.S.$2,118.4 million).

sales and profits in the first half of the fiscal year쎲 Vehicle Business (Automobile Assembly Business)compared with the same period a year ago. TOYODA’s

We currently assemble two vehicle models in the Toyota

strategies and its commitment to meeting sales andlineup, the Vitz (Yaris in Europe) and the Sprinter Carib

profit targets in every business area combined to yield(Corolla Wagon outside Japan), which we produce on behalf

extremely positive results during this period.

of Toyota Motor Corporation (Toyota). High demand for thepopular Vitz (Yaris), which Toyota positioned as a globally

씰Strong Performance in Every Business Segment

strategic small car, continued in its second year, and ourFrom automobile assembly, forklift production, and textile

total production of the two models amounted to 144,976

machinery manufacture to our electronics business, all ofunits during this period, up 34,337 units from the same

TOYODA’s diversified endeavors recorded increases in sales

period of the previous year. Sales in automobile assemblyover the comparable period of the previous fiscal year. Anwere ¥102.3 billion (U.S.$947.6 million), a 27.0% increase

overview of the first half of the fiscal year divided by coreover the corresponding period in the previous year.

business segments is as follows:쎲 Engine Business
TOYODA produces gasoline and diesel engines for Toyota
vehicles as well as for our own line of forklifts. The production
TOYODA AUTOMATIC LOOM WORKS, LTD.

1

of 2,000cc-class C-type diesel engines and 2,000cc-class

22,793 units, an increase of 3,126 units from the previous

S-type gasoline engines dropped during the period underperiod’s sales, due primarily to strong demand in the North

review, and total production fell to 164,525 units, 14,349

American and European markets. In the Japanese market,units fewer than were produced in this period a year earlier.

TOYODA’s sales rose to 12,790 units, 1,237 units more thanHowever, high-value engine production increased, includingin the same period of the prior year. The popularity of thethe 1CD-type common rail 2,000cc turbo-diesel, and theGENEO-B (7FB in overseas markets) electric-powered

2UZ-type gasoline engines that were a new order fromcounterbalanced forklift contributed to the increase in sales

Toyota. As a result, sales amounted to ¥46.8 billion

in Japan, as customers became more environmentally aware(U.S.$433.3 million), a 2.3% increase over the previous

and began to choose such environmentally friendly products

comparable period.

as the emission-free GENEO-B. The resurgence in Japan’s쎲 Car Air-Conditioning Compressor Businessdemand for forklifts, spurred by increasing capital investment

Car air-conditioning compressors developed andin the private sector, also helped boost our sales.

manufactured by TOYODA are marketed to the world’sTOYODA’s forklift business during the first half of the fiscal

leading auto manufacturers throughyear was marked by strategic business

DENSO Corporation. Sales and earn-consolidation with other companies toings in our compressor business during

enhance our product lineup and betterthe first half of this fiscal year wereserve our customers around the world.

strong, with new orders placed andIn order to solidify our global presence

steady sales of automobiles worldwide.

in the materials handling equipment

We shipped 2,265 thousand compres-business beyond our mainstay lineup

sors within Japan, 244 thousand unitsof counterbalanced forklifts, wemore than the same period a year ago.

acquired 97% of all the outstanding

Together with overseas sales of 3,886

shares of BT Industries AB (BTthousand units, a 682 thousand-unit

Industries) of Sweden for 7.4 billion

increase from the first half of the previ-

Swedish kronas (U.S.$759.3 million*)ous year, TOYODA’s total global sales
amounted to 6,151 thousand units, overin June 2000. TOYODA’s and BT
Tadashi Ishikawa, President

Industries’ products complement each926 thousand units more than were sold in the same period

other, enabling us to expand our product lines and position

last year. The value of these sales came to ¥69.1 billion

ourselves as a comprehensive materials handling solutions(U.S.$639.7 million), up 11.8% over this period a year earlier.

provider on a global basis. In July 2000, we reached anagreement with Toyota to strengthen the forklift and materials

Materials Handling Equipment Segment

handling systems businesses of both companies. Toyota’s

The Materials Handling Equipment Segment encompasses

sales and marketing operations for forklifts and materials

the production of forklifts and automated storage and retrieval

handling systems will be integrated into our operations insystems, as well as automatic guided vehicle systems. Forklift

April 2001.

sales accounted for about 96% of total sales in this segment.

* U.S. dollar amounts are translated from Swedish Krona (SEK) at theDuring this six-month period, sales in materials handlingrate of SEK9.69=U.S.$1, for convenience only.

equipment totaled ¥82.3 billion (U.S.$761.8 million), an쎲 Materials Handling Systems Businessincrease of 13.0% over the same period of the previous

Our materials handling systems business produces automatedfiscal year.

storage and retrieval systems and automatic guided vehicle

쎲 Forklift Businesssystems for Japanese customers. Sales in materials handling

Forklift sales in Japan and overseas during the period undersystems during this period also increased, a result of renewed

review increased significantly. Overseas sales reacheddemand in Japan, as private-sector capital investment expanded.

2TOYODA AUTOMATIC LOOM WORKS, LTD.

Textile Machinery Segment씰Finance

TOYODA has over 70 years’ history as a textile machinery

TOYODA raised funds and capital during the period undermanufacturer. Our main products now are ring spinning

review to finance the acquisition of BT Industries andframes, roving frames, and air and water jet looms. TOYODA

capital investment projects. In July 2000, we issued ¥40.0

is a leading manufacturer in the field of air jet looms andbillion (U.S.$370.2 million) of bonds without collateral inspinning frames.

Japan.

Sales during the first half of the fiscal year jumped 55.9%over the same period in the previous year, to ¥14.4 billion

In October 2000, we issued 30 million new shares to raise¥55.7 billion (U.S.$515.6 million).

(U.S.$133.3 million).
쎲 Spinning Machinery Business씰Maximizing Shareholder Value

As a result of aggressive sales activities, particularly in Pakistan,

At TOYODA, the most important aspect of our corporate

Indonesia, and Thailand, sales in spinning machinery for themission is creating greater shareholder value. By implementing

first half of the fiscal year increased to ¥4.8 billion (U.S.$44.7bold strategies with specific goals in each business areamillion), up 105.4% over the same period a year earlier.

and streamlining operations, we will strive to further improve쎲 Weaving Machinery Businessprofitability and maximize shareholder value. At the same

TOYODA dramatically expanded its sales of air jet looms totime, as a good corporate citizen, we will continue to put

China, Taiwan, Indonesia, and Thailand. Shipment of air jetemphasis on environmental protection activities and thelooms in the first half of this fiscal year rose to 1,983 units,

fulfillment of our social responsibilities.

904 units more than in the previous interim period. In addition,

We thank all of our shareholders, customers, suppliers,

sales of water jet looms totaled 494 units, up 76 units, dueand employees for their support during this six-month period,

mainly to increased sales in South Korea and China. Overall

and we are very pleased to be able to report robust sales andsales in the weaving machinery business were ¥9.6 billion

strong earnings at the outset of the millennium. Focusing(U.S.$88.6 million), a 39.0% increase over the same period

on increasing shareholder value, we will continue to makea year earlier.

our best efforts to meet the expectations of our customers,
employees, business partners, and the communities we serve.

“Others” Segment
TOYODA’s new initiatives in electronics and other businesses include next-generation thin film transistor liquid crystal

December 2000

displays ( TFT-LCDs), ball grid array-type plastic package
boards, and printed circuit boards. TOYODA established ajoint venture with Sony Corporation called ST Liquid Crystal
Display Corp. (ST-LCD)** in 1997 to manufacture lowtemperature polysilicon TFT-LCDs. TIBC Corporation, a joint

Chisei Isogai
Chairmanventure company TOYODA set up in 1998 with Ibiden Co.,
Ltd., is engaged in manufacturing plastic package boards
and printed circuit boards. We have positioned these hightechnology business areas as an important pillar of ourAkira Yokoi
Vice Chairman

future growth strategy.
During the first half of the fiscal year, these new businesses, together with the manufacture of press dies, etc., grewTadashi Ishikawa

to ¥18.8 billion (U.S.$173.8 million), an increase of 59.0%

President

from the same period of the previous year.
** ST-LCD is not consolidated but is accounted for under the equity
method in TOYODA’s consolidated financial results.
TOYODA AUTOMATIC LOOM WORKS, LTD.

3