Toyota see profit drop on yen, president promises change

  • Toyota see profit drop on yen, president promises change

Toyota see profit drop on yen, president promises change

Nissan Motor Co 7201.T forecast on Thursday a 7.7 percent fall in operating profit this year as the Japanese automaker expects higher raw materials costs and the yen's strength to weigh on its bottomline.

In the just-ended fiscal year, exchange rate losses lopped 940.0 billion yen ($8.45 billion) off Toyota's operating profit.

Toyota said it aims to increase supply of light trucks and sell more of the recently introduced C-HR SUV in the North American market to boost its performance there. Toyota warned it expected profits to drop to 1.5tn yen (£10.1bn) for the 2018 financial year as a result.

Still, this year Toyota will see a negative impact of around 165 billion yen in costs related to incentives, financial services and other marketing costs in the United States market.

Toyota sold 10.25m vehicles over the year, this is up from 10.18m a year earlier.

Earlier this year Toyota said it would invest $10bn in the U.S. over the next five years.

The firm has invested heavily in upgrading facilities around the world to accommodate the Toyota New Global Architecture (TNGA) vehicle platform.

Part of the problem, the 61-year-old executive says, is Toyota's size and history.

"In other words, I feel a strong sense of crisis about whether or not we are actually executing car-making from the perspective of the customer in all Toyota workplaces - from development, production, procurement and sales, all the way to administrative divisions".

Looking back on the fiscal year that ended on March 31, we achieved operating income of 1 trillion 994.3 billion yen, due to concerted group-wide cost-reduction efforts, coupled with all-out sales efforts in each country and region.

The figure was the third largest ever, and marked the third straight year of growth.

However, he acknowledged that the company can become more efficient. But the sum is much less than the whopping 940 billion yen currency hit it took a year ago.

But the Japanese auto industry is facing uncertainty over Trump's drive to support United States firms over foreign imports, a stance that has raised fears of a possible global trade war.

In North America, vehicle sales totaled 2,837,334 units, a decrease of 1,895 units.

European sales advanced 9.6 percent to 925,000 units in the year ended March 3.