Toyota Motor Corporation (TMC) has reported record net profit of 1017 trillion yen, up just 0.8% year on year, for the fiscal year ended March 31, 2005.

Revenues increased 7.3% to 18.55 trillion yen but operating income rose just 0.3% to 1.67 trillion yen.

Toyota attributed 'positive contributions to operating income' to 230 billion yen in 'improved marketing efforts' and 160 billion yen of cost reduction, offsetting negative changes in exchange rates (140 billion yen), a decrease in the gains recognised on the transfer of the substitutional portion of the employee pension fund to the government of 59.8 billion yen, and a 184.9 billion yen increase in research and development and other expenses.

TMC president Fujio Cho said: "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."

TMC also announced a second-half cash dividend of 40 yen, an increase of 15 yen. Total dividend payout for the full year was 65 yen per share, an increase of 20 yen year-over-year, and the sixth consecutive rise.

In fiscal year 2005, Toyota vehicle sales increased by an unspecified amount to 7.4 million units - all major regions posted gains.

For the fiscal year ending March 31, 2006, using exchange rates of 105 yen to the US dollar and 135 yen to the euro, TMC forecasts unconsolidated net sales of 9.4 trillion yen, ordinary income of 770 billion yen and net income of 500 billion yen - on consolidated vehicle sales of 7.85 million vehicles.

Cho added: "We hope to maintain a similar level of profit as fiscal year 2005 excluding foreign currency impact through improved sales efforts and cost reduction."