Toyota has forecast a 4.2% decline to operating profit for the current financial year – at 2.3 trillion yen – as the higher yen hits overseas earnings in spite of higher forecast global vehicle sales.
Toyota expects operating profit to ease to 2.3 trillion yen in the year to March 2019. Operating income in the year to March 31 2018 increased from just under 2 trillion yen to 2.4 trillion yen, while income before income taxes was 2.6 trillion yen. Net income increased from 1.8311 trillion yen to 2.4939 trillion yen.
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Toyota’s forecast is based on the assumption that the yen will trade around 105 yen to the US dollar in the current financial year, compared with 111 yen in the fiscal year just ended.
Consolidated vehicle sales totalled 8,964,394 units, a decrease of 6,466 units compared to the previous fiscal year.
On a consolidated basis, net revenues for the period totalled 29.3795 trillion yen, an increase of 1.7823 trillion yen.
Operating income increased by 405.4 billion yen. Major factors in the increase included currency fluctuations of 265 billion yen and an increase of 165 billion yen due to cost reduction efforts.
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By GlobalDataTMC Senior Managing Officer Masayoshi Shirayanagi said: “Compared to the previous forecast announced at the time of our Q3 results, and excluding the overall impact of foreign exchange rates, swap valuation gains/losses, and other factors, operating income for the ended fiscal year represents an improvement of 180 billion yen.”
Regional results for fiscal year to 31 March 2018
In Japan, vehicle sales totalled 2,255,313 units, a decrease of 18,649 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 455.7 billion yen to 1.6618 trillion yen.
In North America, vehicle sales totalled 2,806,467 units, a decrease of 30,867 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, decreased by 198.7 billion yen to 132.1 billion yen.
In Europe, vehicle sales totalled 968,077 units, an increase of 43,517 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 88.9 billion yen to 77.1 billion yen.
In Asia, vehicle sales totalled 1,542,806 units, a decrease of 45,016 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 4.3 billion yen to 428.8 billion yen.
In other regions (including Central and South America, Oceania, Africa, and the Middle East), vehicle sales totalled 1,391,731 units, an increase of 44,549 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 54.7 billion yen to 118.1 billion yen.
Outlook
For the fiscal year ending March 31, 2019, Toyota estimates that consolidated vehicles sales will be 8.95 million units – slightly up on the last financial year.
In addition, TMC forecasts consolidated net revenue of 29 trillion yen, operating income of 2.3 trillion yen, and net income of 2.12 trillion yen for the fiscal year ending March 31, 2019, based on an exchange rate of 105 yen to the US dollar and 130 yen to the euro.
