Toyota increases profit by more than 10 percent

Toyota Motor Corporation (TMC) today announced the financial results for the past financial year (April 1, 2019 to March 31, 2020). Despite the last quarter’s weakness due to coronavirus crisis, the Japanese automotive group was able to keep consolidated vehicle sales at just under the previous year’s level (-0.2 percent) at just under 8.96 million units.

Consolidated sales declined slightly by 1.0 percent to 29.93 trillion yen ($267.5 billion) in the past twelve months, and operating profit also declined by one percent to 2.44 trillion yen ($21.8 billion) . By contrast, pre-tax profit rose 11.8 percent to 2.55 trillion yen ($22.83 billion) over the same period, while net income rose 10.3 percent to almost 2.08 trillion yen ($18.55 billion).

“As a result of the worldwide Covid-19 pandemic, net income decreased by 380 billion yen and operating profit by 160 billion yen,” said Kenta Kon, TMC’s Operating Officer. Exchange rate fluctuations also influenced the result.

In Europe, Toyota Motor Corporation recorded further growth in the past financial year: sales in the region climbed by almost 3.5 percent to 1.03 million units. Operating profit improved by 19.6 billion yen ($175.2 million) to 140.7 billion yen ($1.25 billion).

The home market in Japan is up slightly (2.24 million vehicles) (+ 0.6 percent), while sales in the rest of Asia fell 4.7 percent to 1.6 million units. The Group sold a total of 2.71 million vehicles in North America, a decrease of 1.2 percent. In the other regions, including Latin and South America, Africa and the Middle East, 1.37 million vehicles represent an increase of 3.4 percent.

For the new fiscal year ending March 31, 2021, Toyota expects consolidated vehicle sales of seven million units. Revenue is expected to be 24 trillion yen ($225.7 billion), and the company also anticipates an operating profit of 0.5 trillion yen ($4.7 billion). Profit forecasts are not possible in the current situation according to the company.

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