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APToyota booked a record $17.9 billion annual net profit Thursday, driven by a recovery in major markets and the weaker yen, but the world's biggest automaker cautioned that earnings growth would stall this year.

Japanese car companies have been big winners over the past year as a sharp drop in the yen inflated their repatriated profits, while sales accelerated in key markets including the US and China.

Toyota's buoyant results underscore a recovery not only for the Camry and Corolla maker but also for rival auto giants including Nissan and Honda, which saw its net profit in the past fiscal year soar about 55 percent. Nissan reports its annual financial results next week.

On Thursday, Toyota said it had earned a net profit of 1.82 trillion yen ($17.9 billion) over the fiscal year to March, nearly doubling from a year earlier, as sales rose 16.4 percent to 25.69 trillion yen.

Toyota's operating profit jumped to 2.29 trillion yen, from 1.32 trillion yen, it said.

Company president Akio Toyoda credited cost cuts and stronger sales in Japan and North America for the results as Toyota looks to sell more than 10 million vehicles in 2014, an industry record.

But he cautioned that this fiscal year's net profit would come in lower at 1.78 trillion yen, as Toyota eyes "sustainable growth".

"We're determined not to target an unreasonable expansion that is beyond our capacity," he told reporters in Tokyo.

"Our goal is to achieve sustainable growth. The biggest risk is the kind of arrogance that big companies tend to have...Profit is not an objective, but rather a consequence."

Toyota kept the title of world's biggest automaker with 2013 sales of 9.98 million vehicles, outpacing Germany's Volkswagen and General Motors, and said it expects this calendar year to become the first to break the 10 million vehicle sales barrier. 'Not so rosy'

Toyota ended GM's decades-long reign as the world's top automaker in 2008 but lost the crown three years later as Japan's quake-tsunami disaster hammered production and disrupted the supply chains of the nation's automakers.

Toyota has also been dealt a heavy blow from a series of mass recalls affecting millions of cars that damaged its once-stellar reputation for quality and safety.

Japanese automakers' sales in China fell off a cliff in late 2012 and into last year as a Tokyo-Beijing diplomatic row sparked a consumer boycott of Japanese brands in the world's biggest vehicle market.

Relations remain tense, but Japanese manufacturers have reported sales are returning to pre-spat levels.

While Toyota has ramped up its drive to tap emerging markets, analysts pointed to Japan's April sales tax hike -- which could dent consumer spending -- and unrest in Thailand as possible headwinds.

About half of Toyota's latest net profit was due to the weak yen.

"The road ahead is not so rosy", cautioned Shigeru Matsumura, analyst with SMBC Friend Securities.

"The positive impact of the weak yen is fading, while the sales tax hike is likely to hurt sales in Japan," he told AFP.

"Business in emerging economies is also getting tougher as customers demand better quality at low prices. There are some risks on the labour side too."

Toyota was hit by a strike at a production complex in southern India with employees returning to work last month after a five-week standoff.

That came weeks after Toyota recalled 6.39 million vehicles globally over a string of problems, while it also agreed to pay $1.2 billion to settle US criminal charges that it covered up a sticky pedal blamed for dozens of deaths.

Other Japanese automakers have suffered from damaging recalls while General Motors has said its bottom line suffered owing to a $1.3 billion charge for the recall of seven million vehicles worldwide.

"Quality control is a really important issue," said Matsumura at SMBC Friend Securities.

"Automakers are now using a lot of common parts, which could trigger a huge recall once problems come up."

Toyota is among a host of major Japanese firms to announce their first domestic wage hikes in years. The automaker is also boosting its dividend and has announced plans to buy back about $3.5 billion of its shares as calls grow for the firm to unlock a huge cash war chest.

Toyota shares rose 0.30 percent to 5,528 yen in Tokyo. Its results were published after markets closed.

Copyright (2014) AFP. All rights reserved.



This post originally appeared at Agence France Presse. Copyright 2014. Follow Agence France Presse on Twitter.

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Source: Toyota Posts Record $17.9 Billion Profit

Japanese carmaker Toyota has seen its profits nearly double, boosted by the yen's weakness and cost cutting.

It made a net profit of 1.82 trillion yen ($17.8bn; £10.5bn) in the year to 31 March, up from 962bn yen a year ago.

But that was lower than its February forecast of 1.9tn yen profit.

Japan's firms, especially those relying on exports, have benefited from the weakness in the yen which helps lift their profits when they repatriate their overseas earnings back home.

The Japanese yen has weakened by nearly 18% against the US dollar since the start of 2013 amid aggressive policy measures by the government.

Toyota, the world's biggest carmaker, said the yen's weakness boosted its profits by nearly 900bn yen during the past financial year.

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Source: Toyota profit nearly doubles to $17.8bn

TOKYO - Toyota chalked up a record annual profit and sales above 10 million vehicles for the first time, but forecast Thursday a slower year ahead as the momentum from a weak yen fades.

Expenses such as the $1.2 billion penalty it paid in a settlement with the U.S. Justice Department earlier this year for hiding information about defects in its cars dented its profit for January-March quarter, according to Toyota.

Toyota Motor Corp., the world's top automaker, is forecasting a 1.78 trillion yen ($17.5 billion) profit for the fiscal year through March 2015.

That's lower than what the company recorded for the fiscal year just ended, when its profit almost doubled to a record 1.82 trillion yen ($17.9 billion) from 962 billion yen the previous year.

Annual sales jumped 16 per cent to 25.69 trillion yen ($252 billion), helped by a weak yen which aids Japanese exporters and thanks to growth in the U.S., Europe, Japan and the rest of Asia. The yen perk is likely transitory as the currency isn't expected to weaken indefinitely.

Toyota believes Japan sales were inflated in recent months as consumers rushed to buy ahead of a tax increase that kicked in April 1, so that such growth won't hold up during the current fiscal year.

Still, the company is on a roll.

The maker of the Prius hybrid, Lexus luxury model and Camry sedan became the first automaker to sell more than 10 million vehicles in a 12 month period, with sales totalling 10.13 million vehicles around the world for the fiscal year ended March. It also expects to surpass the 10-million milestone for the current calendar year.

It is expecting solid growth to continue, hoping to sell 10.25 million vehicles globally for the fiscal year through March 2015.

Highlighting the Japanese automaker's ambitions, it noted that extra costs including research and development expenses were a factor in reducing its January-March profit to 297 billion yen ($2.9 billion) from 313.9 billion yen a year earlier.

Quarterly sales rose 12.5 per cent to 6.57 trillion yen ($64.5 billion).

It also said costs related to closing its auto plant in Australia cut into profits.

Toyota has bounced back from a massive recall crisis that began in late 2009, which tarnished its reputation.

But there was a moment of deja vu last month when it announced a recall of 6.4 million vehicles globally, for a variety of problems spanning nearly 30 models in Japan, North America, Europe and other places. Some vehicles were recalled for more than one problem.

Toyota has been trying to put the recall mess behind it, with the $1.2 billion settlement it reached with the U.S. Justice Department. It earlier paid fines of more than $66 million for delays in reporting unintended acceleration problems.

The National Highway Traffic Safety Administration never found defects in electronics or software in Toyota cars, which had been targeted as a possible cause.

Even more of a threat than recalls could be the fierce competition Toyota faces in key global markets from Volkswagen AG of Germany and Hyundai of South Korea, as well as U.S. automakers such as General Motors Co. and Ford Motor Co.

Toyota sold fewer vehicles in North American for January-March at 567,000 vehicles compared to the same period the previous year at 603,000 vehicles.

But it is making up for such losses in other markets.

A weak yen also helped earnings at Honda Motor Co., which last week said that January-March net profit totalled 170.5 billion yen ($1.67 billion), up from 75.7 billion yen the year before.

Honda sold nearly 1.2 million vehicles worldwide during the quarter, also helped by demand ahead of the Japanese tax rise. It is forecasting a 4 per cent rise in annual profit to 595 billion yen ($5.8 billion).

Although the dollar soared to about 100 yen during the past fiscal year from about 80 yen the fiscal year before that, it's unlikely to keep rising at that pace, to 120 yen, for instance.

Nissan Motor Co., allied with Renault SA of France, releases results Monday.

___

Follow Yuri Kageyama on Twitter at http://ift.tt/JCrSOT

© Copyright Times Colonist

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Source: Toyota annual profit nearly doubles on better sales, but quarterly profit down ...

Credit: Reuters/Kevork Djansezian



The signboard of the national headquarters of Toyota Motor Sales USA, is seen in Torrance, California April 28, 2014.

For President Akio Toyoda, the quieter year in prospect offers a different challenge to the major events that have marked his five years in charge, like the massive recalls of 2010, Japan's 2011 tsunami and the boycott of Japanese products by Chinese consumers following a territorial dispute in late 2012.

Instead, when Toyoda briefs reporters on last year's earnings and this year's prospects later on Thursday, he'll be expected to explain how the world's best-selling car maker can keep growing while coping with more routine matters - a declining Japanese auto market, hit by a sales tax hike in April, and a hiatus in vehicle launches.

Toyota's net profit is expected to grow just 7.4 percent to 2.03 trillion yen ($20 billion) in the financial year to March 2015, according to a mean estimate of 24 analysts surveyed by Thomson Reuters I/B/E/S.

For Toyota, that would represent a swift deceleration from the doubling of net profit that analysts estimate took place last year. They expect Toyota to report a record net profit of $18.6 billion for the year ended March 31, buoyed by exports.

The dollar has risen nearly 30 percent against the yen since mid-November 2012, when it first became clear that Shinzo Abe, who has been pledging to boost Japan's economy, would take power as prime minister with measures that have weakened the domestic currency.

Yet such a significant decline in the value of the yen versus major currencies like the U.S. dollar and the euro is unlikely to be repeated over the next year, meaning profitability of Toyota's export sales to major markets like the United States won't grow much.

Famously cautious in its financial forecasting, Toyota itself could project no growth when it issues its forecast for the financial year through March 2015 - or even predict a fall in profit, one source close to Toyota and analysts said. That would mark the first time in three years that the home of household-name models like the Corolla sedan and the Prius hybrid expects a profit decline.

"Toyota is temporarily entering a lull this year as it gets ready for next year and beyond," said Koichi Sugimoto, a senior analyst at Mitsubishi UFJ Morgan Stanley Securities. Sugimoto said Toyota isn't expected to launch key new vehicles, including the remodeled Prius hybrid, until the fiscal year beginning April 2015.

CONSERVATIVE VIEWS

A conservative forecast from Toyota would echo that of its peers. Rival Honda Motor Co (7267.T) said late last month that it sees net profit for this financial year growing just 3.6 percent, with weaker emerging markets' currencies biting into profits.

Toyota subsidiary Daihatsu Motor Co (7262.T) said it expects net profit to fall 2 percent this year, while five out of seven auto parts makers in the Toyota group see profits down this year, including Denso Corp (6902.T) and Aisin Seki Co (7259.T).

Toyota has relentlessly cut around 300 billion yen in costs each year. Unlike rival automakers Nissan Motor Co (7201.T) and Honda that have been in expansion mode, Toyota has put a freeze on building new plants for three years since around early 2013.

But for it to bolster growth, analysts say it must now invest more, especially to increase production capacity and marketing.

"Toyota is reaching a turning point at which it will move from its emphasis on defense to significantly more active commitment to growth," Jefferies analyst Takaki Nakanishi said in a report. Nakanishi said there's an expectation that Toyota could soon show how it plans to expand capacity.

While Toyota expects its group-wide vehicle sales in Japan to drop 5 percent to 2.18 million vehicles in calendar 2014, it sees overseas sales growing 6 percent to 8.14 million vehicles. Toyota's group sales figures include Daihatsu and Hino Motors

($1 = 101.5550 Japanese Yen)

(Reporting by Yoko Kubota; Editing by Kenneth Maxwell)

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Source: Toyota heads into lower

CHENNAI: Toyota Kirloskar Motor (TKM) on Wednesday launched the new Etios Cross crossover, expanding the family along with its existing models Etios and Liva.

The vehicle - which combines the rugged looks of an SUV with the fuel efficiency and maneuverability of a hatchback -- is extremely popular in Brazil where it was first launched. The new Etios Cross will also be exported from India.

Available in three powerful engine options, 1.5 litre & 1.2 litre petrol engine and 1.4 litre D-4D diesel engine, the new crossover from Toyota is positioned as a youthful yet rugged offering.

It is available in new sporty inferno orange and seven other colors- ultramarine blue, classic grey, symphony silver, celestial black, white, vermilion red and harmony beige.

"Along with a set of whole new exciting features, Etios Cross also ensures the highest standards of safety with dual front SRS airbags, ABS with EBD and the globally renowned promise of Toyota's QDR (quality, durability & reliability) standards," the company said in a statement.

Naomi Ishii, MD, TKM, said, "The B car segment is one of the fastest growing segments in the industry. Segment growth comes along with fast changing customer requirements. Customers today want a vehicle with unique styling that will make a statement. The Etios Cross has been introduced to cater to these needs."

N Raja, director and senior VP, sales and marketing, said: "The Etios Cross received very good response after we unveiled it at the Auto Expo in February. The number of booking orders received has been encouraging and more than what we expected. The highest demand is for the Top VD grade. We will try our best to deliver the cars as soon as we can and reduce the waiting period. The crossover segment is growing and Etios Cross marks our entry into yet another category in the diverse and fast growing B car segment. The Etios brand now offers a sedan, a hatch and a cross over."

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Source: Toyota Etios Cross launched in India

Toyota has just announced prices for its new cross hatchback, the Etios Cross. Priced between Rs 5.76-7.50 lakh (ex-showroom, Delhi), the Etios Cross will aim at stirring up the rather quiet cross hatchback segment. The Toyota Etios Cross is available with two petrol and one diesel engine. Combined with spunky exterior styling and an equally impressive interior design, the Etios Cross is aimed squarely at a younger and more adventurous audience. Also Read: Toyota Etios Cross - Review



The cheapest version of the Etios Cross is the 1.2-litre, 4-cylinder, petrol engined car priced at Rs 5.76 lakh. The 1.2-litre, naturally aspirated engine makes a respectable 80PS of peak power and 104Nm of peak torque. The other petrol option, a 1.5-litre, 4-cylinder, naturally aspirated version also found in the TRD Etios Liva makes 90Ps of peak power and 132Nm of peak torque. The higher powered petrol engined car is priced at Rs 7.35 lakh and comes fully loaded with all the bells and whistles available. The popular D-4D, 1.4-litre, turbocharged diesel engine makes 68PS of power and 170Nm of torque. Although the diesel looks underpowered on paper, with torque available as low at 1800rpm, feels quite nimble on tarmac. The diesel is available in two trim levels and is available from Rs 6.9-7.45 lakh (ex-showroom, Delhi)

The Toyota Etios Cross' spunky exterior styling combined with an equally impressive interior finished in different shades of black is also quite impressive. The Toyota Etios Cross comes garnished with a set of full body claddings and chunkier bumpers. Finished in matte black with silver insets, the claddings and bumpers give the car a bulkier and tougher look. The large 15-inch wheels with a two tone black and diamond cut finish too adds to the aggressive look of the 2014 Toyota Etios Cross. On the interior front, the 2014 Etios Cross comes with a black dashboard and centre console. The large and comfortable seats too come adorned with black fabric with the Etios Cross logos stitched into them.



On the whole, we expect the Etios Cross to do rather well in a segment that has traditionally never taken the fancy of the Indian customer. The Toyota Etios Cross will go up against the Skoda Fabia Scout and the Volkswagen Cross Polo, both of which are already in the Indian market. The Etios Cross will also face tough competition from the soon to be launched Fiat Avventura and the Maruti-Suzuki S-Cross. Also Read: Toyota Etios Cross - Review SLIDESHOW:

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Source: Toyota Etios Cross launched at Rs 5.76 lakh

Toyota has announced more job cuts before its planned closure in 2017.

Toyota Motor Corporation has foreshadowed up to 160 additional Australian job cuts at its Victorian technical centre to coincide with the company's car manufacturing operations shutting in 2017.

The Japanese car maker announced on Thursday that a number of engineering and administration roles at the centre would become redundant from as early as next year. The move follows Toyota Motor Corporation's decision in February to cease car manufacturing at the technical centre's sister company, Toyota Australia, in 2017.

"Toyota Technical Centre Australia (TTC-AU) ... will significantly reduce the size of its business over the coming years, with only a limited number of functions likely to remain beyond 2017," the company said in a statement.

"Senior executives at TTC-AU and Toyota Motor Corporation in Japan have worked tirelessly to investigate options for the future of the company and have sadly determined that TTC-AU is not viable in the long term in its current format without local production.

"As a result, there will be staggered redundancies from as early as next year as each major project for Australia and Toyota globally is completed."

Some industry insiders considered the closure of the technical centre a foregone conclusion following Toyota Motor Corporation's decision to cease car making in Australia. Others held a glimmer of hope that Toyota would maintain its presence in Australia in at least a design and engineering capacity, similar to strategies already announced by car makers Ford and Holden.

According to the TTC-AU website, the company specialises in engineering, quality engineering, body engineering, chassis engineering, customer quality engineering department, electronic engineering, vehicle evaluation and administration jobs.

TTC-AU president Max Gillard vowed to support the company's 160 employees during the redundancy period.

"Our immediate priority is to meet with each of our groups to explain the ramifications this decision will have on them and detail the support services that are available," Mr Gillard said in a statement.

"The final size, structure, location and remaining functions of TTC-AU beyond 2017 will be determined closer to the date."

TTC-AU and Toyota Australia declined to comment further.

The Australian Manufacturing Workers Union has been contacted for comment.

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Source: Toyota announces more Australian job cuts

Motor racing is a fickle mistress, doubly so in the Endurance variety where the potential pitfalls mean avoiding the counting of chickens is somewhat of an obsession. After a trouble-free run to victory in the Ardennes, though, Anthony Davidson could be forgiven for harbouring the briefest of thoughts that this year's Le Mans 24 Hours could just have his name on it. The win, with his team-mates Nicolas Lapierre and Sébastien Buemi, here at the Six Hours of Spa, makes it two from two in the opening races of the 2014 FIA World Endurance Championship (WEC) and this second victory - in perfect, dry conditions and running the low-downforce configuration the team will use at Le Mans - was a convincing statement that Toyota have the tools to do the job at La Sarthe in June.

Davidson, Lapierre and Buemi took the flag 1min 13sec clear of the chasing No1 Audi, last year's world championship-winning car of Loïc Duval, Tom Kristensen and Lucas di Grassi, who were seven seconds ahead of the second Toyota of Stéphane Sarrazin, Kazuki Nakajima and Alex Wurz.

Porsche, in only their second race after returning to the top-end of sportscar racing, claimed fourth, with the No14 of Marc Lieb, Neel Jani and Romain Dumas, while the sister No20 car in which Mark Webber had finished with a podium place at the first round in Silverstone, suffering from rear damper problems and a drive shaft failure that necessitated repeated visits to the pits, could manage only 23rd place.

The race had opened well for the German marque with the No14 claiming their first pole in the WEC and that translated into a lead, proving the 919 Hybrid, also running in low-downforce Le Mans spec, to have encouraging pace on only its second competitive outing. It held the lead into the second hour from the Davidson No8 Toyota, which had started alongside it on the grid. But, with the Toyota squad double-stinting their tyres and Lieb stalling the Porsche in the pits after a longer stop to take fresh rubber, Buemi took the lead.

Running out front, the Toyota extended its advantage and in pace looked to be untroubled by the Porsche, which dropped back to just under 20 seconds behind, even when also opting to try double-stinting the tyres. A chase to the flag, however, was denied Porsche when Dumas lost power due to an electrical problem that switched off the car's hybrid system. Taking a risk that paid off, the team opted to keep him on track rather than pitting and the driver was able to reset the system without coming in but the damage had been done and he had lost a full minute to the leading Toyota.

The problem opened a door for Audi, who struggled to match the speed of their rivals early in the race but found pace in the second half. This allowed the No2 car to move up to second, a position it held despite a late charge from the No7 Toyota, which had dropped back after suffering from oversteer, a stint where Wurz had oil on his windscreen and a lack of grip when double-stinting tyres.

This is Davidson's second win at the Six Hours of Spa - he won with Peugeot in 2011, the same year that team won the Intercontinental Le Mans Cup, the forerunner of the WEC. This win puts the No8 team at the top of the world championship table, ahead of the sister car. Davidson also took fourth at Le Mans in 2011, suffered a terrible accident the following year but came back in 2013 to claim second place with Toyota. He can hope to better that after a consummate performance here by him and his team-mates offered the best possible preparation for the team as they head towards the 24.

"It's great we got two cars on to the podium again," he said. "Now our attention has to turn to the big one in June. I am so confident in the package we have and the team around us; it really feels like we are flourishing at the right time."

The British driver confirmed on the grid before the race that despite the new-seasons focus on energy recovery and limiting fuel consumption, the drivers are still racing flat-out. He was also pleased to be top of the table in the race for the title won by Allan McNish last year.

"This season is the first time I have ever led a world championship," he added. "To win again here for one of the team's home races, with a lot of support from the guys from Cologne, was fantastic."

Toyota, then, hold the advantage as the ultimate test at Le Mans beckons but Porsche, who insist that this season is a learning process and that finishing is the target, will be pleased with the pace shown by their car, which, if it runs well, will clearly challenge. Audi, in turn, will be buoyed by their running in the latter part of the race but will have expected more from their third entry, which was in Le Mans spec and finished sixth, two laps off the leaders.

Predictions, as noted, are a dangerous business but on this showing the battle at La Sarthe in June is likely to be closer than ever, the makings of a real classic given a fascinating prologue here in the Ardennes.

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Source: Anthony Davidson and Toyota win Spa in promising portent for Le Mans