TOYOTA PROFIT DROPS DESPITE RECORD SALES
Japanese car giant Toyota said on Wednesday that its annual net profit fell by a quarter, despite record sales, blaming investment losses — but it forecast an upturn in the year ahead.
Toyota’s bottom line for the past year was pushed down by some 294 billion yen in book losses on its investment portfolio.
The maker of the Camry sedan and Prius hybrid said net profit was down 24.5 percent, from its best-ever result the year before, at 1.88 trillion yen ($17 billion) in the year to March 31.
The firm forecast net profit to rise 19.5 percent in the coming year to 2.25 trillion yen.
Senior managing officer Masayoshi Shirayanagi blamed “the deterioration of the stock market in the current period” for the investment losses. He added the figures suffered in comparison with previous year’s 250-billion-yen boost from US tax reform.
Sales rose 2.9 percent to a record 30.23 trillion yen, leaving an operating profit of 2.47 trillion yen, which was up 2.8 percent year-on-year.
Toyota expects operating profit for the current year to March 2020 will increase 3.3 percent to 2.55 trillion yen. Sales forecast to sag 0.7 percent to 30 trillion yen.