Toyota’s net profit expected to grow 7.4 percent to $20 billion in the 2013 fiscal year

Article by Christian A., on May 9, 2014

Toyota Motor Corp. expects to post JPY1.78 trillion ($17 billion) in net profit in the fiscal year ending March 31, 2015, after logging JPY1.82 billion in net income in the fiscal year ended March 31, 2014. Toyota expects its results to be hurt by slumping demand in Japan, stiffer rivalry in the United States, and the Japanese yen that has started to stabilize.

The carmaker’s results for the previous fiscal year were thanks to a weaker yen boosted the value of sales from Japan-sourced Prius hybrids and Lexus vehicles. With the yen losing its streak, Toyota as well as Honda Motor Co. are expected to post smaller-than-estimated earnings.

Toyota and Honda are bracing for a record dive in local demand as Japan commenced its first sales-tax increase in nearly two decades last month. Tatsuo Yoshida, an automotive analyst for Barclays, told Bloomberg by phone that the “tailwind is over" for Toyota.

He said it is hard to assume flat sales or even growth in Japan due to of the “hangover from last fiscal year." Toyota’s 89.5-percent surge in net income was mainly attributed to economic policies initiated by Japan Prime Minister Shinzo Abe that helped weaken the yen by 8.7 percent against the dollar in the 12 months ending in March.

Toyota also has to hurdle a number of barriers like recalls due to safety issues, including a recent call back of over 6 million vehicles like Camry sedan and RAV4 SUV, and February recall of 1.9 million Prius hybrids.

Toyota has reached an agreement pay a $1.2 billion penalty to end a US criminal probe into sudden unintended acceleration issues with it vehicles.

Toyota has seen its sales in the US grow at a slower rate than the overall market in the first four months of 2014, with sales of Camry dropping by 0.2 percent. The carmaker also saw sales of the Prius dropped 18 percent so far this year. [source: Reuters]

Topics: toyota, profit

If you liked the article, share on:

Pin It

Comments

Recommended

Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
McLaren car owners will be thanking the automotive company as it has decided to roll out new goodies for the 540C, 570S and 570GT sports car line-up. From this series...
by - March 29, 2017
On July 11, Audi is set to reveal its flagship luxury sedan, the all new A8. And at this moment, none of us are sure how this model will look....
by - March 29, 2017
The recent Porsche 911 is definitely considered one of the most elite sports car to grace the roads worldwide. The task of producing its successor is challenging enough for the...
by - March 29, 2017
British startup Zenos, which entered bankruptcy administration earlier this year is now back in business. The Norfolk-based sports car manufacturer was bought by a consortium of investors headed by AC...
by - March 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries