On 30/01/2012 22:44:16,
VII
wrote:
This from The Third Avenue Annual Report:
TOYOTA INDUSTRIES COMMON
Toyota Industries (“Industries’) is a diversified manufacturing company that produces automobiles, engines, air conditioning compressors, materials handling equipment (e.g., forklifts), textile machinery and logistics related equipment. The company also has a portfolio of
Japanese common stocks, the largest position in which is a 6.8% ownership stake in Toyota Motor. The decline in
Industries’ NAV since 2005 has been primarily driven by the falling stock price of Toyota Motor common, which accounts for approximately 50% of its estimated NAV. Toyota Motor’s business performance has been disappointing in recent years owing to operating losses
during the global recession in 2008-2009 and recent market share losses driven first by recall issues and more recently by production disruptions from the earthquake in Japan and floods in Thailand. As we have written in
previous letters, we do not believe that these issues have resulted in a permanent impairment to Industries common. Nevertheless, we have reduced our holding by nearly two-thirds, as our other core holdings appear to have more attractive growth prospects and common stock
appreciation potential. Industries remains extremely well financed and as of October 31, 2011, its shares traded at
about a 40% discount from our estimate of NAV
