Toyota Motor Corporation said profits for its fiscal year that ended 31 March reached ¥962.1 billion or $9.7 billion, up from $2.8 billion the year before. Vehicles sales in the U.S. and a weaker Japanese Yen – off -20% in the last quarter – sent profits soaring to more twice that of the second largest automaker, General Motors at $4.9 billion for 2012.
This was the best annual return in five years for the world’s largest automaker, and a clear indication that the recalls of ten million vehicles during 2009-2010 and the product shortages from natural disasters in 2011 are now behind it.
“Toyota has learned a lot through our concerted efforts to overcome various difficulties in the last four years, said Akio Toyoda, CEO.
“As a result, have we really turned into a company that is able to be profitable and continue to grow no matter what happens to its business environment? Not sure yet, is my honest answer,” said Toyoda.
Overall TMC sales at $223 billion (¥22 trillion) increased 18.7%. While sales increased everywhere to 8.87 million vehicles, it was North America where Toyota posted its most significant gains at 2.47 million, an increase of 32% compared to the previous fiscal year. Asia at 1.68 million vehicles posted a 27% increase.
In Japan, vehicle sales totaled 2.279 million units, an increase of 207,997 units compared to the previous fiscal year. Operating income from operations in Japan increased by ¥783.3 billion to ¥576.3 billion.
In North America operating income increased by ¥35.5 billion to ¥221.9 billion, including ¥33.0 billion of valuation gains/losses on interest rate swaps. Operating income, excluding the impact of valuation gains/losses on interest rate swaps, increased by ¥28.7 billion to ¥188.9 billion.
In Europe, vehicle sales totaled 799,085 units, an increase of 1,092 units, while operating income increased by ¥8.6 billion to ¥26.4 billion.
In Asia, operating income increased by ¥119.2 billion, to ¥376.0 billion.
In Central and South America, Oceania and Africa, vehicle sales totaled 1.64 million units, an increase of 356,516 units, while operating income increased by ¥24.9 billion to ¥133.7 billion.
In the financial services segment, operating income increased by ¥9.3 billion, to ¥315.8 billion compared to the previous fiscal year, including ¥29.5 billion of valuation gains/losses on interest rate swaps. Excluding valuation gains/losses, operating income decreased by ¥3.5 billion to ¥286.2 billion.
Toyota predicted that gains would continue to increase for the 2014 fiscal year. TMC said a profit of $14 billion (¥1.37 trillion), a stunning 42% increase from 2013 with revenue projected to reach $240 billion or ¥23.5 trillion.
In North America, a new third-generation Lexus IS sedan aimed directly at the BMW 3-Series that is just going on sale, as well as a new version the perennial best-selling Toyota Corolla compact in the fall will help boost sales.