News Column

Toyota eclipses 2007 profit record

May 9, 2014

By Masaaki Kameda, Japan Times, Tokyo

May 09--Toyota Motor Corp. announced Thursday it posted a record group operating profit of Y2.29 trillion in fiscal 2013, breaking its previous record of Y2.27 trillion in fiscal 2007, before the global financial crisis.

Operating profit jumped 73.5 percent from the year before on sales of Y25.69 trillion, up 16.4 percent, thanks in part to cost-cutting.

"We have secured Y2.29 trillion in operating profit boosted by increased sales of cars in Japan and North America as well as groupwide efforts for cost improvements," Toyota President Akio Toyoda told a news conference in Tokyo.

The weakened yen also boosted profit by Y900 billion, the auto giant said.

Consolidated net profit leaped 89.5 percent to a record of Y1.82 trillion, but group operating profit came in below the Y2.4 trillion projected in February, partly due to settlements related to recalls issued in the United States from 2009 to 2010. The automaker set aside $1.2 billion for the settlements.

The firm expects a consolidated operating profit of Y2.3 trillion, up 0.3 percent, and a group net profit of Y1.78 trillion, down 2.4 percent, for the business year ending next March.

The automaker expects car sales in Japan to drop off by 155,000 to 2.21 million units in the year due to the impact of the first stage of the consumption tax hike to 8 percent from 5 percent on April 1.

Toyota's sales were growing mainly in North America by the year ended March 2008, but collapsed after the global economic crisis erupted that fall, dragging it into a consolidated operating loss of Y461 billion the following year.

The company also suffered from a major vehicle recall in the year through March 2010, but returned to a profit of Y147.5 billion, thanks largely to government subsidies on purchases of environmentally friendly vehicles.

Information from Kyodo added


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Source: Japan Times