Toyota annual profit falls for first time in 5 years
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
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.