Toyota Increases Net Profit By 135 Percent

2023 Author: Eric Donovan | [email protected]. Last modified: 2023-08-25 09:36

Toyota set records en masse after the first nine months of business. The world's largest car manufacturer wants to jump another hurdle in 2014.

The world's largest car company Toyota expects record profits in the current fiscal year. The industry leader raised its earnings forecast on Tuesday after the stock market closed and is now heading for a record operating profit of 2.4 trillion yen (17.4 billion euros). This would mean a jump of 81.7 percent compared to the previous year. So far, Toyota had expected 2.2 trillion yen for the 2013/2014 fiscal year (March 31). On the one hand, Toyota is benefiting from the weak yen, which makes cars cheaper abroad. But cost reductions and strong sales in the important North American market also have a positive effect.

Toyota exceeds target record profit

The targeted record profit would exceed the previous 2.3 trillion yen that Toyota had earned in fiscal 2007 before the global financial crisis broke out. The bottom line is that Toyota wants to achieve a profit of 1.9 trillion yen instead of the 1.6 trillion yen previously expected.

The rapid devaluation of the yen is having an enormous impact on Toyota. Every fall in the external value of the Japanese currency by 1 yen against the dollar increases operating profit by 40 billion yen. While the company was based on an exchange rate of 97 yen in November, the greenback actually traded well above the 100 yen mark. Toyota uses an exchange rate for the revised annual forecastnow from an average of 100 yen to the dollar. In the third fiscal quarter, Toyota increased net income by 425.5 billion to 525.5 billion yen.

Toyota wary of emerging markets

In relation to the first nine months of the fiscal year running until March 31, Toyota was able to expand net profit rapidly by 135.4 percent to 1.5 trillion yen. Revenue increased by 17.8 percent to 19.12 trillion yen during the period. Toyota, whose group of companies also includes the small car manufacturer Daihatsu and the commercial vehicle manufacturer Hino Motors, continues to expect sales of 9.1 million vehicles for the current fiscal year. The important US market alone accounts for 2.6 million cars. You are experiencing a “moderate recovery” in the US and other parts of the world, said Toyota manager Takuo Sasaki.

However, one is cautious about emerging markets given the recent financial turmoil. In the Japanese home market, the flagship group sold around 1.6 million cars in the first nine months, 26,557 fewer than in the same period last year. In the North American market, however, Toyota increased sales by 96,762 to around 1.96 million cars. In Europe, too, sales increased in the same period, by 27,122 units to 629 713 vehicles. In the Asian markets, however, sales fell by 66,642 cars to 1.2 million units.

Toyota expects 10.3 million sales for 2014

In relation to the previous calendar year, Toyota was the first company to break the production mark of 10 million cars: Around 10.1 million cars rolled off the assembly line. That was 2.1 percent more than in the previous year. Toyota increased sales worldwide by 2.4 percent to a good 9.9 million cars, but fell short of the 10 million mark. That is to be overcome this year: Toyota plans to sell 10.3 million cars globally this year. (dpa)