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]

If you liked the article, share on:

Topics: toyota, profit

Comments

Recommended

We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
The other day, it was confirmed that Volvo will finally bring the XC40 to US soil, where it will first make an appearance at the 2017 Los Angeles Auto Show....
by - November 23, 2017
There is no question that the new BMW M5 (F90) high performance sports sedan is more powerful, faster and more enticing than the previous model. But for interested customers in...
by - November 23, 2017
Following the Tesla Roadster’s electrifying revelation on Thursday, Musk’s highly ambitious goals have skyrocketed when he tweeted about his future plans for the new sports car. Well, kind of. The...
by - November 23, 2017
Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 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