Toyota Motor Corp. said Tuesday it posted a record net profit of 1.16 trillion yen for the year to March, becoming the first Japanese company to exceed the 1 trillion yen mark.
Net profit jumped 54.8 percent from a year earlier, backed by increased overseas and domestic sales and a 230 billion yen reduction in costs.
Operating profit rose 31.1 percent to a record 1.66 trillion yen while revenue grew 11.6 percent to an all-time high of 17.29 trillion yen.
Group sales and operating profit marked record highs for the fourth consecutive year.
“This was a year in which our efforts began bearing fruit,” Toyota Executive Vice President Ryuji Araki told a news conference at a Tokyo hotel, adding group sales grew in all regions and production capacity reached full speed.
Araki also pointed to improvements in earnings of Toyota’s subsidiaries, whose combined operating profits quadrupled from the corresponding figures five years ago.
One-time pension-related gains helped inflate the company’s earnings. Toyota reported a 107 billion yen operating profit generated from returning part of its employees’ pension obligations to the government.
Toyota said the yen’s rise against the dollar sucked some 140 billion yen from its operating profit.
But Japan’s biggest automaker cut 230 billion yen in manufacturing costs and was able to offset the negative impact of the exchange rate. A stronger yen reduces the value of Japanese firms’ overseas earnings when repatriated.
In terms of sales volume, Toyota’s global sales increased 9.9 percent from the previous year to a record 6,719,363 units, led by robust overseas and domestic sales. These figures include sales by two subsidiaries, Daihatsu Motor Co. and Hino Motors Ltd.
Domestic sales rose 3.8 percent to 2,303,078 units, led by the success of the new hybrid Prius and new Crown luxury sedan.
In North America, Toyota sold 2,102,681 units, up 6.1 percent from a year earlier, with the Siena minivan and Lexus RX 330 sport utility vehicle enjoying brisk sales.
In Europe, sales climbed 15.8 percent to 898,201 units, thanks to the success of the new Avensis model and the Yaris compact.
Toyota hopes to boost its global sales volume to 7,020,000 vehicles for the current fiscal year.
Starting last fiscal year, Toyota is applying generally accepted U.S. accounting principles to its consolidated financial reports.
On a parent-only basis, Toyota reported a net profit of 581.4 billion yen, down 8.3 percent from a year earlier.
Operating profit declined 3.2 percent to 833.7 billion yen while revenues rose 2.6 percent to 8.96 trillion yen.
For the current year, Araki said, the firm hopes to generate the same levels of group profits as last year even though the negative effects of the strong yen are expected to continue. The firm did not disclose its group earning projections.
On a parent-only basis, Toyota expects to generate a net profit of 520 billion yen, an operating profit of 700 billion yen and revenue of 9 trillion yen.
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