Today, Toyota warned that despite the reporting of a skyrocketing of net profit amounting 2.5 trillion yen (£17bn), the company did not expect that the coming financial year will be as positive because of fluctuations in currency.
The car manufacturer said that at this time next year, the company expected its profit to drop to 2.12 trillion yen, a decline of 15 percent, based on current exchange rates between the dollar and the yen and the euro and the yen.
However, the car manufacturer benefited from the fluctuations in the yen, which observed an increase in operating income by 405.4 bn yen to 2.3998 trillion yen. The company also said that the efforts in costs reduction contributed to the increase.
Last year, Toyota also sold 8,964,394 cars, a decrease of 6,466 as compared with the number of cars sold during the previous year.
Masayoshi Shirayanagi, the Senior Managing Officer, stated: “Compared to the previous forecast announced at the time of our Q3 results, and excluding the overall impact of foreign exchange rates, swap valuation gains/losses, and other factors, operating income for the ended fiscal year represents an improvement of 180 billion yen.”
The most difficult market for Toyota remained to be North America, where its sales dropped by 30,867 to 2,806,467. The operating income of the company also dropped from 198.7 billion yen to 132.1 billion yen.
However, Europe observed an increase in car sales to 968,077, boosting the operating income to 77.1 billion yen.