Toy­ota an­nual profit falls for first time in 5 years

New Straits Times - - Business / World -

TOKYO: Toy­ota yes­ter­day re­ported its first drop in an­nual net profit for five years, while it un­ex­pect­edly warned that earn­ings would fall again ow­ing to pricey United States cus­tomer in­cen­tives and a fore­cast pick up in the yen.

The com­pany's top ex­ec­u­tive also re­peated con­cerns that it was get­ting harder for Ja­pan's big­gest car­maker to keep prof­its buoy­ant as sales top out around 10 mil­lion ve­hi­cles an­nu­ally.

The down­beat pre­dic­tion underscores how the coun­try’s car­mak­ers have re­lied heav­ily on a slump in the yen in re­cent years.

But the cur­rency’s sharp gains last year — largely driven by Brexit and tum­bling world eq­uity mar­kets — took a bite out of Toy­ota's lat­est re­sults.

On Wed­nes­day, the Corolla and Prius hy­brid maker warned it ex­pected more forex pain, push­ing down prof­its again in the cur­rent fis­cal year to March.

Over­all, Toy­ota posted a net profit of 1.83 tril­lion yen (RM69.44 bil­lion) on slightly lower rev­enue of 27.6 tril­lion yen in the re­cently ended year to March.

That is down more than 20 per cent from a record 2.31 tril­lion yen net profit the previous year.

Toy­ota ex­pects a net profit of 1.5 tril­lion yen in the year to March next year — way off mar­ket ex­pec­ta­tions of around 1.9 tril­lion yen.

Its lat­est an­nual ve­hi­cle sales ticked up to 10.25 mil­lion units from 10.09 mil­lion units. AFP

BLOOMBERG PIC

Toy­ota posted a net profit of 1.83 tril­lion yen on slightly lower rev­enue of 27.6 tril­lion yen in the re­cently ended year to March.

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