Toyota Motor Corporation boosted full fiscal year operating income from JPY355.6bn  to JPY1.32 trillion, an increase of JPY965.2bn. Net income rose from JPY283.5bn to JPY962.1bn on sales up 18.7% to JPY22 trillion. 

TMC said factors contributing to the increase in operating income included "positive effects from marketing activities generating JPY650bn, cost reduction efforts saving JPY450bn plus currency fluctuations of JPY150bn which offset the negative effects of related expenses of JPY300bn.

Vehicle unit sales rose 1.519m units to 8.871m in the fiscal year to 31 March, 2013.

TMC president Akio Toyoda said: “In the fiscal year ended March, we experienced increased sales of our vehicles mainly in North America and Asia, and, coupled with the results of company-wide profit improvement activities, we booked operating income of JPY1.32 trillion.

"We have faced many challenges since 2009 but have learned valuable lessons, including the need for Toyota to maintain sustainable growth. We believe that the driver for sustainable growth is ultimately ever-better cars, and we are launching cars developed with this mindset. We are also making progress in reforming our manufacturing technologies and vehicle development processes under the Toyota New Global Architecture and I am convinced that the positive cycle defined for our business in the Toyota Global Vision is now gradually but steadily taking shape.”

In Japan, vehicle sales totaled 2.279m units, an increase of 207,997 fiscal year on year. Operating income there increased JPY783.3bn to JPY576.3bn.

In North America, vehicle sales totaled 2.469m units, an increase of 596,381 units. Operating income increased JPY35.5bn to JPY221.9bn, including JPY33bn of gains/losses on interest rate swaps. Operating income, excluding the impact of valuation gains/losses on interest rate swaps, increased by JPY28.7bn to JPY188.9bn.

In Europe, vehicle sales totaled 799,085 units, an increase of just 1,092, while operating income increased JPY8.6bn to JPY26.4bn.

In Asia, vehicle sales totaled 1.684m units, an increase of 356,749, while operating income increased JPY119.2bn  to JPY376bn.

In Central and South America, Oceania and Africa, vehicle sales totaled 1.640m units, an increase of 356,516 units, while operating income increased by JPY24.9bn to JPY133.7bn.

Financial services operating income increased JPY9.3bn to JPY315.8bn including JPY29.5bn of valuation gains/losses on interest rate swaps. Excluding those, operating income fell JPY3.5bn to JPY286.2bn.

Outlook

TMC reckons vehicles sales for fiscal 2013/14 will be 9.1m units, an increase of approximately 229,000 units over the previous year, due to increased vehicle sales outside Japan.

It has forecast revenue of JPY23.5 trillion, operating income of JPY1.8 trillion and net income of JPY1.37 trillion based on JPY90 to the dollar and JPY120 to the euro.

“Toyota has recovered much of the market share lost due to the recalls and natural disaster,” said Alec Gutierrez, senior analyst at Kelley Blue Book.

“Although Toyota has seen solid growth in market share and sales since 2012, sales declined in April.  Toyota now finds themselves in one of the most competitive environments the industry has seen in decades, facing strong entrants from familiar competitors Honda and Nissan, as well as reinvigorated competition from US and Korean automakers.

"Although Toyota will find that gaining market share will be difficult moving forward, the new Corolla launching later this year could inject new blood into the brand while a declining JPY could help shore up the bottom line.”