Toyota Posts Record Profit of $11 Billion

Toyota Motor Corp. posted a record profit of $ 11 Billion for the fiscal year ended as sales for the world’s largest car manufacturer grew across all major regions.

Toyota, whose solid results contrast with the struggles of U.S. rivals General Motors Corp. and Ford Motor Co., recorded a 7.3 percent rise in sales to 18.55 trillion yen (US$ 176 billion; euro137 billion) for the fiscal year ending March 31, from 17.3 trillion a year earlier.

Net income for Japan’s top automaker grew 0.8 percent to 1.17 trillion yen (US$ 11 billion; euro8.6 billion) from 1.16 trillion yen the previous year.

Global sales rose to 7.4 million vehicles, up 10.3 percent from 6.7 million vehicles, with solid sales growth in North America, Europe, Japan and the rest of Asia. Toyota, which does not give consolidated profit forecasts, expects sales to rise to 7.85 million for the year ending March 2006.

Robust sales combined with 160 billion yen (US$ 1.5 billion; euro1.2 billion) in cost reduction efforts during the latest fiscal year to offset the damage from an unfavorable exchange rate totaling 140 billion yen (US$ 1.3 billion; euro1 billion). Toyota did not break down quarterly numbers.

The Japanese yen has been rising lately, a trend that tends to erode the value of overseas earnings for Toyota and other Japanese exporters. The dollar has been trading at about 108 yen lately, down from about 113 yen a year ago.

"We are very proud that the company achieved increases both in revenue and income while continuing to make major investments in our long-term growth," Toyota President Fujio Cho said in a statement.

Sales were strong in all major markets in fiscal 2004. In Japan, where Toyota controls 44.5 percent of the auto market, sales increased by 78,000 vehicles to 2.38 million vehicles on the popularity of the Vitz compact and Crown sedan.

Sales in North America reached 2.27 million vehicles, up by 168,000 vehicles, as demand remained strong for the Prius hybrid, which switches between a gasoline engine and electric motor to deliver good mileage, as well as for Scion cars that target younger drivers.

Vehicle sales in Europe and other regions, including Asia and the Middle East, were also up.

Toyota, based in Toyota city, central Japan, has been doing so well in contrast to faltering U.S. automakers that Chairman Hiroshi Okuda has even expressed concerns and said he was considering offers of help.

Okuda has said Toyota is willing to consider raising prices on cars in North America to give the U.S. automakers breathing room as well as possibly sharing its hybrid vehicle technology. Toyota and General Motors deny they are already in talks.

Toyota has already surpassed Ford, based in Dearborn, Michigan, as the world’s second biggest automaker in annual global vehicle sales although it still trails Detroit-based GM.

Toyota shares, which have recently settled from a surge to about the same level it was a year ago, closed unchanged at 3,900 yen (US $ 37; euro29) on the Tokyo Stock Exchange, shortly before earnings were released.