2014 Earnings Likely To Approach Record
Sharp Fall In Yen Gives Bottom Line A Boost
Toyota Motor Corp said net profit will accelerate again by 42 per cent in the current financial year while sales will approach a new record.
In the financial year ended March 31, Toyota tripled net profit to 962.1 trillion yen ($9.7 billion) compared with the previous year.
In a statement, Toyota said it plans for record sales of 9.1 million vehicles and for net profit of 1.37 trillion yen in the current financial year, which would be close to its record high of 1.7 trillion yen set in 2008.
Analysts said Toyota was benefiting from a slump in the yen’s value on foreign exchange markets which began late last year. The yen dived about 20 per cent in value against the dollar from mid-November through March. Toyota had suffered from a series of missteps, some self-inflicted like the massive product recalls, others beyond its control, like the natural disasters in Japan and flooding in Thailand. Toyota also had stuttered after trying to expand too quickly.
At a news conference in Tokyo after the results announcement, Toyota President Akio Toyoda said the company’s improved performance followed aggressive cost-cutting and efficiency improvements.
Neil Winton – May 15, 2013