Toyota has posted a surge to profit in the fourth quarter on the back of lower costs, despite lower profits for the fiscal year ended March 31 amid lower sales caused by the pandemic.
As sales rebounded, Toyota almost doubled its fourth quarter operating profit to 689.8 billion yen although in the fiscal year just ended operating profit was down 8.4% to 2.2 trillion yen (although net income was up 10% to 2.25 trillion yen).
Worldwide sales for the fiscal year ended March 31 were off 15% at 7.65m vehicles. Revenue was down 8.9% at 27.2 trillion yen.
Toyota CFO Kenta Kon said that due to the spread of COVID-19 in each region, sales volume declined significantly in the 1st half of the fiscal year, but in the 2nd half of the fiscal year, sales volume increased in many regions compared to the previous fiscal year.
Operating income was boosted by cost reduction efforts, especially in North America and Asia.
Consolidated vehicle sales for the fiscal year ending March 2022 are expected by Toyota to reach 8.7m units, some 14% ahead of the previous year. Vehicle sales are expected to increase in each region.
Toyota’s results contrast with the downbeat results from Nissan earlier this week.
Toyota forecasts that higher sales will yield a 14% increase to its operating profit in the current fiscal year. CFO Kon also said the effect of the microchip shortage was kept in check for Toyota by careful supply chain management.