Toyota Motor Corp.'s profits surged 53 per cent to a record high in the just-ended fiscal year as Japan's biggest auto maker boosted sales in the United States while dominating the market at home. Toyota's group profits totalled 944.6 billion yen — about $11.2 billion Canadian — for the fiscal year ended March 31, up from 615.8 billion yen a year ago, the company said yesterday. Sales edged up 6 per cent to 16.05 trillion yen from 15.1 trillion yen.
The Toronto Star
May 9, 2003
Toyota sales go full speed ahead for record profit
Analysts fear U.S. sales will falter. 3.51 million vehicles produced.
Associated Press
TOKYO—Toyota Motor Corp.'s profits surged 53 per cent to a record high in the just-ended fiscal year as Japan's biggest auto maker boosted sales in the United States while dominating the market at home.
Toyota's group profits totalled 944.6 billion yen — about $11.2 billion Canadian — for the fiscal year ended March 31, up from 615.8 billion yen a year ago, the company said yesterday. Sales edged up 6 per cent to 16.05 trillion yen from 15.1 trillion yen.
Both were record highs for the manufacturer and a record for the third straight year.
Cost-reduction efforts added 300 billion yen to the company's bottom line, while a favourable exchange rate added 60 billion yen, Toyota said.
Analysts say the future for Toyota, based in Toyota city in central Japan, depends on how the auto market holds up, especially in North America, where the company makes more than half its profits.
Fears are growing that U.S. demand will taper off because auto makers have been piling up incentives to keep sales going.
"Things look good so far up close for Toyota," said Hitoshi Onishi, auto analyst at Cosmo Securities Co. in Tokyo. "But it's hard to predict when a backlash might begin in North American sales."
Toyota's domestic vehicle production totalled 3.51 million units in fiscal 2002, up 4.5 per cent from a year ago, while overseas production jumped 20.8 per cent to 2.22 million vehicles from 1.83 million.
Around the world, Toyota sold 6.25 million vehicles, up 8 per cent from 5.78 million a year ago. For fiscal 2003, Toyota is forecasting selling 6.26 million vehicles.
In the just-ended year, sales in North America reached 1.98 million vehicles, up by 202,000 vehicles from a year ago, on strong demand for the Corolla compact, Highlander sport utility vehicle and Lexus ES300 luxury model.
Toyota also dominated in Japan at a difficult time for its troubled economy, controlling 42.3 per cent of the market and selling 1.724 million vehicles, managing to inch up 0.2 per cent from 1.720 million a year ago.
This fiscal year is off to a good start for Toyota, with sales booming in North America and its seventh consecutive record-setting April. Sales of the new 4Runner sport utility vehicle were up 36 per cent from last year.
Earlier this week, Toyota came in first in offering the highest initial quality in its cars, according to an annual report by J.D. Power and Associates, a key study on auto quality.
Toyota president Fujio Cho credited cost-cutting and strong overseas sales for the results.
"We achieved our best-ever results by creating products that respond to the needs of our customers around the world," he said.
Associated Press
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Risks: Canada, 20030509 Toyota sales
