Toyota Motor Corp.’s 5-percent drop in its fourth fiscal quarter ended March 31, 2014 was affected by $1.2 billion in payment to settle unintended acceleration. That payment, coupled with other one-time charges like costs for terminated manufacturing operations in Australia, hurt its earnings by $2.17 billion.
The carmaker actually posted a 6-percent surge in retail sales in the period to 2.58 million units and a 13-percent jump in global revenues to $63.9 billion in the three months. Toyota, however, posted a 5-percent drop in net income to JPY297 billion ($2.89 billion).
Toyota posted a 9-percent drop in fourth-quarter profits in North America to $498.1 million, despite logging a 6-percent surge in retail unit sales to 581,261 vehicles. The meltdown in earnings in its fourth fiscal quarter failed to stop Toyota from reporting a record operating and net profits.
The Japanese carmaker posted a 74-percent climb in operating profit to $22.30 billion and an 89.5-percent jump in net income to $17.73 billion in the fiscal year ended March 31. The company saw its global sales leap 5 percent to 10.13 million vehicles and its revenue rise 16 percent to $249.9 billion.
Toyota’s earning benefited from the weakened yen, which hikes the yen value of overseas earnings repatriated to Japan, rendering exports more competitive internationally.
Toyota logged $8.75 billion in foreign exchange gain in the period, thanks to the yen, which has depreciated about 20 percent against the dollar over the year, Toyota said. Toyota booked in the fourth quarter a $1.2-billion settlement with the US Department of Justice in March.