Latest news with #Akio
The Star
3 days ago
- Automotive
- The Star
Toyota Industries board to discuss US$42bil buyout
Simon Humphries, Toyota Motor Member of the Board, Chief Branding Officer attends the world premiere of the all-new RAV4 SUV unveiling where Akio Toyoda, Chairman is displayed on the screen, in Tokyo, Japan May 21, 2025. Although Akio is chairman of the world's No. 1 carmaker, his direct ownership stands at less than one per cent, while Toyota Industries has a 9.1 per cent stake in the manufacturer. - Reuters TOKYO: Toyota Industries Corp. said its board will evaluate a buyout proposal Tuesday (June 3) that will take the company private, a move that will strengthen the founding family's grip over Japan's biggest business empire. A group led by Toyota Motor Corp. Chairman Akio Toyoda is seeking to acquire the subsidiary for ¥6 trillion ($42 billion), people familiar with the matter said last month. Toyota Industries issued a statement on Tuesday in response to reports that the deal will be announced, saying that no specific decisions have been made public. A deal, which would rank among the biggest buyouts on record anywhere, would resolve a parent-child structure that has been criticised in the past and also be in line with the Japanese government's efforts to encourage big companies to unwind cross-held shares with subsidiaries and other businesses. At the same time, a takeover may give Toyoda greater influence over the carmaker founded by his grandfather. "This matter is scheduled to be discussed at its board of directors meeting to be held today, and the decision made will be promptly disclosed,' Toyota Industries said in the statement. Toyoda will put in a personal investment of his own, as will Toyota Motor, according to the people. Although Akio is chairman of the world's No. 1 carmaker, his direct ownership stands at less than one per cent, while Toyota Industries has a 9.1 per cent stake in the manufacturer. Shares in Toyota Industries rose less than one per cent in early morning trading in Tokyo on Tuesday. The stock is up more than 40 per cent since Bloomberg first reported the takeover proposal on April 25. Toyota Industries, the supplier of textile looms, forklifts and parts for Toyota's cars, was founded by Toyoda's great-grandfather Sakichi, whose son Kiichiro went on to found Toyota Motor, which has become the world's biggest carmaker with annual production of more than 11 million vehicles. The parties involved have picked financial advisers and are working toward a tender offer as soon as November, people familiar with the matter have said. A special board committee, created to evaluate the proposal as per government guidelines, is evaluating the buyout proposal by a special purpose vehicle established by Toyoda. Toyota Industries will hold its annual shareholder meeting on June 10, while Toyota Motor's will take place two days later. There's a complex web of cross-shareholdings among Toyota group companies with Toyota Motor holding 24.2 per cent of Toyota Industries' shares, while Toyota Fudosan Co., a private real estate developer chaired by Toyoda, owns 5.32 per cent of the supplier. Japan is accelerating efforts to unwind such arrangements among companies, aiming to improve corporate governance, enhance transparency and boost shareholder returns. Toyoda's buyout plan comes as Toyota seeks to rebuild trust in its governance after a series of regulatory scandals were uncovered at a pair of subsidiaries that included Toyota Industries. - Bloomberg
Business Times
3 days ago
- Automotive
- Business Times
Toyota Industries board to discuss six trillion yen buyout on Tuesday
[TOKYO] Toyota Industries said its board will evaluate a buyout proposal on Tuesday (Jun 3) that will take the company private, a move that will strengthen the founding family's grip over Japan's biggest business empire. A group led by Toyota Motor chairman Akio Toyoda is seeking to acquire the subsidiary for six trillion yen (S$54 billion), sources familiar with the matter said last month. Toyota Industries issued a statement on Tuesday in response to reports that the deal will be announced, saying that no specific decisions have been made public. A deal, which would rank among the biggest buyouts on record anywhere, would resolve a parent-child structure that has been criticised in the past and also be in line with the Japanese government's efforts to encourage big companies to unwind cross-held shares with subsidiaries and other businesses. At the same time, a takeover may give Toyoda greater influence over the carmaker founded by his grandfather. 'This matter is scheduled to be discussed at its board of directors meeting to be held today, and the decision made will be promptly disclosed,' Toyota Industries said. Toyoda will put in a personal investment of his own, as will Toyota Motor, according to the sources. Although Akio is chairman of the world's No 1 carmaker, his direct ownership stands at less than 1 per cent, while Toyota Industries has a 9.1 per cent stake in the manufacturer. Shares in Toyota Industries rose less than 1 per cent in early morning trading in Tokyo on Tuesday. The stock is up more than 40 per cent since Bloomberg first reported the takeover proposal on Apr 25. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Toyota Industries, the supplier of textile looms, forklifts and parts for Toyota's cars, was founded by Toyoda's great-grandfather Sakichi, whose son Kiichiro went on to found Toyota Motor, which has become the world's biggest carmaker with annual production of more than 11 million vehicles. The parties involved have picked financial advisers and are working towards a tender offer as soon as November, sources familiar with the matter have said. A special board committee, created to evaluate the proposal as per government guidelines, is evaluating the buyout proposal by a special purpose vehicle established by Toyoda. Toyota Industries will hold its annual shareholder meeting on Jun 10, while Toyota Motor's will take place two days later. There's a complex web of cross-shareholdings among Toyota group companies with Toyota Motor holding 24.2 per cent of Toyota Industries' shares, while Toyota Fudosan, a private real estate developer chaired by Toyoda, owns 5.32 per cent of the supplier. Japan is accelerating efforts to unwind such arrangements among companies, aiming to improve corporate governance, enhance transparency and boost shareholder returns. Toyoda's buyout plan comes as Toyota seeks to rebuild trust in its governance after a series of regulatory scandals were uncovered at a pair of subsidiaries that included Toyota Industries. BLOOMBERG
Yahoo
15-05-2025
- Business
- Yahoo
The Estee Lauder Companies Inc (EL) Q3 2025 Earnings Call Highlights: Strategic Gains Amidst ...
Release Date: May 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. The Estee Lauder Companies Inc (NYSE:EL) achieved market share gains in key markets such as the U.S., China, and Japan, marking significant progress in these regions. Gross margin expanded by 310 basis points compared to the previous year, reflecting operational efficiencies and strategic pricing actions. The company is making significant progress in its restructuring program, reducing over 2,600 net positions and streamlining middle management by 20%. Innovations such as Clinique's new Moisture Surge and Estee Lauder's Double Wear concealer have driven consumer acquisition and market share gains. The Estee Lauder Companies Inc (NYSE:EL) is leveraging AI-driven marketing and expanding its presence on platforms like Amazon and TikTok, contributing to mid-single-digit growth in online organic sales. Organic sales declined by 9% in the third quarter, with travel retail experiencing a significant 28% decline. Diluted earnings per share decreased by 33%, indicating financial pressure despite some operational improvements. Operating margin contracted by 270 basis points to 11.4%, driven by increased consumer-facing investments and sales deleverage. The company faces ongoing challenges with weakened consumer sentiment in the U.S. and parts of Europe, as well as prolonged weak sentiment in China. The geopolitical landscape, including evolving trade policies and tariffs, adds uncertainty and potential material impact on future profitability. Warning! GuruFocus has detected 5 Warning Signs with EL. Q: Can you discuss your expectations for trade inventories exiting fiscal 2025 and any associated risks? A: Akio, CFO: We have made significant progress, especially in travel retail, where inventory levels have been reduced significantly. Retailers globally are tightening inventory, and we are adjusting accordingly. We are confident in our guidance, which reflects current market conditions, including the volatility around the June 18 shopping festival. Q: What are your planning assumptions for FY 2026, particularly regarding retail inventory and market trends? A: Stefano, CEO: We are confident in returning to positive growth in FY 2026, driven by market share gains in key markets like the U.S., China, and Japan. We are seeing sequential improvements and are de-risking travel retail. However, we are monitoring external factors like consumer sentiment in China and the U.S. Q: Can you provide more details on your tariff mitigation strategies and the timeline for reducing U.S. to China product sourcing? A: Stefano, CEO: By the end of this fiscal year, we aim to reduce U.S. to China sourcing to around 10%, leveraging our new manufacturing facility in Japan. Most U.S. imports are from Europe, and we are confident in our ability to mitigate tariff impacts through regional manufacturing and strategic sourcing. Q: What are your expectations for savings from the TRGP in fiscal 2025, and what areas are you targeting for further savings? A: Akio, CFO: We are on target with our TRGP savings for fiscal 2025, focusing on gross margin improvements and employee cost reductions. For fiscal 2026, we are accelerating outsourcing and procurement projects to drive further efficiencies and cost savings. Q: How do you plan to achieve competitive market share performance across all regions in fiscal 2026? A: Stefano, CEO: We are focusing on maintaining and accelerating market share gains in the U.S., China, and Japan. We are leveraging our strong brand portfolio and innovation to drive growth. We are also addressing areas of weakness, such as travel retail and certain emerging markets, with targeted strategies. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-04-2025
- Automotive
- Yahoo
Toyota chairman proposes record buyout of its supplier at $42 billion valuation
(Bloomberg) — Toyota Motor Corp. Chairman Akio Toyoda has proposed a buyout of Toyota Industries Corp., people familiar with the matter said, seeking to consolidate his grip on Japan's biggest business empire as a wave of merger and acquisition activity roils the country. Trump Gives New York 'One Last Chance' to End Congestion Fee Why Car YouTuber Matt Farah Is Fighting for Walkable Cities Backyard Micro-Flats Aim to Ease South Africa's Housing Crisis The Racial Wealth Gap Is Not Just About Money Newsom Says California Is Now the World's Fourth-Biggest Economy The proposal values Toyota Industries, which makes looms for textile manufacturing as well as parts for Toyota's cars, at ¥6 trillion ($42 billion), one of the people said, a roughly 40% premium over its market capitalization at the close Friday. Toyota Industries, the company founded by Toyoda's great-grandfather Sakichi that ultimately birthed the world's No. 1 carmaker, formed a special committee after receiving the proposal and hired advisers to review its viability, the people said, asking not to be identified because the information isn't public. Although Akio is chairman of Toyota Motor, his direct ownership of the company stands at less than 1%, while Toyota Industries has a 9.1% stake in the carmaker. The buyout would bolster Akio's holding and influence over the broader Toyota group, which includes suppliers and stakes in other businesses, including rival carmakers. A deal would rank among the biggest buyouts on record globally. Discussions are still ongoing and the deal may not proceed in its current form, or at all. In a statement, Toyota Motor said it was considering various possibilities, including a partial investment in Toyota Industries, but nothing has been decided. Toyota Industries said in an emailed statement that it's considering all possibilities, including capital policies, to enhance the corporate value of the group, but no decisions have been made. The Toyota Industries buyout proposal comes months after the collapse of a similar bid to take Japanese retailer Seven & i Holdings Co. private. Led by its founding Ito family, that plan's failure due to lack of funding has raised the chances of a takeover by Canadian rival Alimentation Couche-Tard Inc. The liberalization of capital flows in the country, along with a push for greater governance and accountability to shareholders, has challenged longstanding ties between management and stakeholders that emphasized stability. 'While we have seen the unwinding of cross-shareholdings within the Toyota group over the past two years, we have been focusing on Toyota Industries as the 'final boss' of corporate governance reforms,' Masahiro Akita, a Tokyo-based equity analyst at Bernstein, said in a note reacting to Bloomberg's report. 'Increasing regulatory and market focus on corporate governance should trigger a realignment of the parent-subsidiary listing structure, including Toyota and Toyota Industries.' If the Toyota Industries bid proceeds, financing will comprise of personal investment by Akio Toyoda, along with loans from Mitsubishi UFJ Financial Group Inc. and Japan's other megabanks, said one of the people. Akio, 68, stepped aside as Toyota Motor's chief executive officer in 2023 after leading the family business for 14 years, handing the job over to then-Lexus chief Koji Sato. Even so, the grandson of the carmaker's founder wields outsize influence over the company. In recent years, however, Toyota Motor shareholders' support for Toyoda has dwindled. More than a quarter of votes cast opposed his reappointment, partly over the company's handling of vehicle-safety certifications. His share of affirmative votes dropped to 72%, from 85% and 96% in the prior two years. For all that resistance, Toyoda's insistence that Toyota stay the course with a 'multi-pathway' strategy that leaves room for gas-electric hybrid powertrains is paying off. The company has extended its lead as the world's top-selling carmaker as the broader industry's transition to fully electric vehicles slows. At ¥42.5 trillion, Toyota is the world's second-most valuable auto company, after Tesla Inc. It's not clear whether a successful buyout of Toyota Industries would change Toyoda's participation on the carmaker's board. While now smaller and lower-profile than the auto giant, Toyota Industries has a hallowed position in the Toyoda family lore. Its history goes back 135 years, when Sakichi improved upon loom designs to manufacture textiles, which at the time were an important export for Japan. His son, Kiichiro, founded Toyota Motor in 1937. The two companies are still deeply intertwined. Toyota Motor and its affiliates own about 38% of the shares in Toyota Industries, while Toyota Fudosan Co., the real estate company that counts Akio as its chairman, owns 5%. —With assistance from Alastair Gale and Santosh Nair. As More Women Lift Weights, Gyms Might Never Be the Same Why US Men Think College Isn't Worth It Anymore The Mastermind of the Yellowstone Universe Isn't Done Yet India's 110% Car Tariffs Become Harder to Defend in Trump Era Eight Charts Show Men Are Falling Behind, From Classrooms to Careers ©2025 Bloomberg L.P.
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Business Standard
26-04-2025
- Automotive
- Business Standard
Toyota chairman proposes record buyout of its supplier at $42 bn valuation
Toyota Motor Corp. Chairman Akio Toyoda has proposed a buyout of Toyota Industries Corp., people familiar with the matter said, seeking to consolidate his grip on Japan's biggest business empire as a wave of merger and acquisition activity roils the country. The proposal values Toyota Industries, which makes looms for textile manufacturing as well as parts for Toyota's cars, at ¥6 trillion ($42 billion), one of the people said, a roughly 40 per cent premium over its market capitalization at the close Friday. Toyota Industries, the company founded by Toyoda's great-grandfather Sakichi that ultimately birthed the world's No. 1 carmaker, formed a special committee after receiving the proposal and hired advisers to review its viability, the people said, asking not to be identified because the information isn't public. Although Akio is chairman of Toyota Motor, his direct ownership of the company stands at less than 1 per cent, while Toyota Industries has a 9.1 per cent stake in the carmaker. The buyout would bolster Akio's holding and influence over the broader Toyota group, which includes suppliers and stakes in other businesses, including rival carmakers. A deal would rank among the biggest buyouts on record globally. Discussions are still ongoing and the deal may not proceed in its current form, or at all. In a statement, Toyota Motor said it was considering various possibilities, including a partial investment in Toyota Industries, but nothing has been decided. Toyota Industries said in an emailed statement that it's considering all possibilities, including capital policies, to enhance the corporate value of the group, but no decisions have been made. Seven & i Precedent The Toyota Industries buyout proposal comes months after the collapse of a similar bid to take Japanese retailer Seven & i Holdings Co. private. Led by its founding Ito family, that plan's failure due to lack of funding has raised the chances of a takeover by Canadian rival Alimentation Couche-Tard Inc. The liberalization of capital flows in the country, along with a push for greater governance and accountability to shareholders, has challenged longstanding ties between management and stakeholders that emphasized stability. 'While we have seen the unwinding of cross-shareholdings within the Toyota group over the past two years, we have been focusing on Toyota Industries as the 'final boss' of corporate governance reforms,' Masahiro Akita, a Tokyo-based equity analyst at Bernstein, said in a note reacting to Bloomberg's report. 'Increasing regulatory and market focus on corporate governance should trigger a realignment of the parent-subsidiary listing structure, including Toyota and Toyota Industries.' If the Toyota Industries bid proceeds, financing will comprise of personal investment by Akio Toyoda, along with loans from Mitsubishi UFJ Financial Group Inc. and Japan's other megabanks, said one of the people. Akio, 68, stepped aside as Toyota Motor's chief executive officer in 2023 after leading the family business for 14 years, handing the job over to then-Lexus chief Koji Sato. Even so, the grandson of the carmaker's founder wields outsize influence over the company. Waning Support In recent years, however, Toyota Motor shareholders' support for Toyoda has dwindled. More than a quarter of votes cast opposed his reappointment, partly over the company's handling of vehicle-safety certifications. His share of affirmative votes dropped to 72 per cent, from 85 per cent and 96 per cent in the prior two years. For all that resistance, Toyoda's insistence that Toyota stay the course with a 'multi-pathway' strategy that leaves room for gas-electric hybrid powertrains is paying off. The company has extended its lead as the world's top-selling carmaker as the broader industry's transition to fully electric vehicles slows. At ¥42.5 trillion, Toyota is the world's second-most valuable auto company, after Tesla Inc. It's not clear whether a successful buyout of Toyota Industries would change Toyoda's participation on the carmaker's board. While now smaller and lower-profile than the auto giant, Toyota Industries has a hallowed position in the Toyoda family lore. Its history goes back 135 years, when Sakichi improved upon loom designs to manufacture textiles, which at the time were an important export for Japan. His son, Kiichiro, founded Toyota Motor in 1937. The two companies are still deeply intertwined. Toyota Motor and its affiliates own about 38 per cent of the shares in Toyota Industries, while Toyota Fudosan Co., the real estate company that counts Akio as its chairman, owns 5 per cent.
