Toyota's Group Net Profit Soars

TOKYO May 8, 2003; Toyota Motor Corp. reported today that its group net profit for the fiscal year ended March 31 jumped 53% to 944.67 billion yen ($8.12 billion) from 615.82 billion yen a year earlier thanks to continued solid sales overseas and cost-cutting efforts.

Japan's biggest car maker said group sales rose 6.3% to 16.054 trillion yen from 15.106 trillion yen, while pretax profit climbed 27% to 1.414 trillion yen - a record-high annual group pretax profit for a Japanese company - from 1.114 trillion yen.

All Toyota's sales and profit figures were record highs for the firm.

But amid concerns about the future course of the global economy after the war in Iraq, Toyota expects its parent-only sales and profits will fall across the board this fiscal year.

Parent operating profit is pegged at 620 billion yen, down 28%. Pretax profit is estimated at 670 billion yen, down 25%, while the company expects a 5% decline in sales to 8.3 trillion yen.

Toyota forecasts currency fluctuations will depress its operating profit by 160 billion yen, although it expects cost-reduction efforts will boost operating profit by 140 billion yen.

The sales and profit projections are based on an assumption that the dollar will average 115 yen and the euro 125 yen for the fiscal year.

Toyota doesn't disclose group earnings projections.

For the just ended business year, Toyota reported solid sales in the offshore markets helped underpin its profitability. Its domestic vehicle sales on a group basis were almost flat at 2.218 million units from 2.217 million units a year ago. But overseas sales in volume terms climbed 13% to 4.028 million units during the just-ended fiscal year.