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Updated: May 11, 2010 16:25 IST

Toyota returns to profit on cost-cutting, increased sales

DPA
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President of Toyota Motor Corp., Akio Toyoda, leaves following a press conference in Tokyo, on Tuesday. Photo: AP.
President of Toyota Motor Corp., Akio Toyoda, leaves following a press conference in Tokyo, on Tuesday. Photo: AP.

Despite massive recalls worldwide, Toyota Motor Corp said on Tuesday its operating profit for the financial year that ended March 31 returned to 147.5 billion yen (1.59 billion dollars) from a loss of 461.01 billion yen for the previous year due to cost—cutting. Toyota’s net profit increased from a loss of 437 billion yen to 209.4 billion yen for the financial year.

The automaker said net revenues for the financial year totalled 18.95 trillion yen, a decrease of 7.7 per cent compared to the last fiscal year. Consolidated vehicle sales decreased 330,000 units to 7.24 million from a year earlier, Toyota said. Vehicle sales in Asia increased 8.2 per cent to 979 thousand units as operating income rose 15.6 per cent to 203.6 billion yen, the company said. The number of vehicles sold in North America was down 114,000 units to 2.1 million units, and operating income climbed by 475.6 billion yen to 85.4 billion yen on valuation profits from interest—rate swaps, improved market conditions and financial services.

Toyota said it expected consolidated net revenue of 19.2 trillion yen, operating income of 280 billion yen and net income of 310 billion yen for the financial year ending March 31, 2011, based on an exchange rate of 90 yen to the US dollar and 125 yen to the euro. In the financial year that ended March 31, 2009, Toyota posted its first operating loss in 71 years as the global economic slump hurt its worldwide auto sales. The world’s largest automaker has been struggling to regain consumer confidence since the global recalls of more than 8 million vehicles tarnished its reputation for safety and quality.

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