Updated Wednesday, May 12, 2021 – 11:40
Toyota Motor has increased its net profit by 10.3% in its last financial year despite the pandemic
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The Japanese automaker posted profits of 2.24 trillion yen (17 billion euros) in the twelve months to March 31, 2021, its fiscal year, thanks to the reduction in costs and some recovery in sales in recent months, as it explained in its financial report published this Wednesday.
Regarding the Toyota’s operating profit fell 8.4 to 2.19 million yen (16,650 million euros), and its sales turnover decreased by 8.9% year-on-year, to 27.21 million yen (206,210 million euros).
Toyota sold 7,646,000 vehicles of the firm last year, which marked a decrease of 14.6% or 1.3 million units. By region, Toyota’s revenues in Japan decreased by 9.1%, while the decline in North America was 10.8% and in Europe, 6.6%. Revenues for the Central America, South America, Oceana, Africa and the Middle East regions fell by 11.4%.
Sales combined with its luxury brand Lexus and other group firms (Hino and Daithasu) were 9.92 million units, 5.1% less. The automotive industry “saw its figures fall substantially” in 2020 in many regions “mainly due to the effects of the suspension of the activities of dealers around the world, with the exception of some areas such as China, where the impact of the pandemic was reduced, “says the report.
Toyota’s profits had decreased by 14% between April and December due to the decline in marketing in the first half of the year, but in recent months “sales managed to exceed in many regions those of the previous fiscal year,” explained its CFO, Kenta Kon, in the presentation of the data. Kon highlighted the increase in the commercialization of its electrified vehicles of 12.3% year-on-year, to 2.15 million units, a sector they seek to strengthen.
“We are investing more resources than ever in decarbonization,” said the Japanese, who indicated that the group seeks to develop “production lines that meet the needs of each region,” a project that must still be substantially strengthened, he said. Toyota expects to increase its sales of electrified models by 29.9% to 2.8 million in the current fiscal year, with the goal of reaching 8 million by 2030, or around 80% of its sales, explained its communications director, Jun Nagata during the presentation.
The group foresees that in a decade 100% of its sales in Europe will be electric models and that they will represent 95% of its sales in Japan and 70% in North America by then.
Forecasts for this year
With this vision and sales recovery prospects despite the uncertainty about the pandemic, Toyota expects its net profit to expand by 2.4%, up to 2.3 trillion yen (17,430 million euros), in the fiscal year ending in March 2022.
The automotive group estimates that its operating profit will increase by 13.8% year-on-year, to 2.5 trillion yen (18,940 million euros), and its sales revenue will grow by 10.2%, to 30 trillion yen (227,290 million euros) .
With regard to its vehicle sales, it expects them to increase 13.8% to 8.7 million units for Toyota models, and 6.3% to 10.5 million for the entire group. These figures, which Toyota representatives defined as “conservative”, take into account factors such as the prolonged impact of the pandemic, which will continue to affect its production and supply, or the problems and increase in cost of components that affect the sector for, for example , battery development.
The manufacturer’s results appeared to be welcomed by its investors on the Tokyo Stock Exchange, where Toyota shares closed 2.18% higher after its release before the end of trading.
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