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:

Comments

Recommended

McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
While Honda’s new 2018 HR-V will be rolling out at the dealerships with just a few updates, the company is certainly not giving up its spot as the best-selling vehicle...
by - August 18, 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