Toyota – record profits in 2016, drop in 2017 predicted

Toyota Mirai logo-01

Toyota Motors has reported a profit of 2.31 trillion yen (RM85 billion) for the financial year ending year in March 2016 – a record figure for the third time in a row. Toyota, however, expects its net profit to decline at the end of the current financial year, ending in March 2017, the Wall Street Journal reports. The company expects a 34% drop in net profit, down to 1.5 trillion yen (RM55 billion) due to a strengthening currency.

Last year, one dollar traded at approximately 120 yen. The weak yen benefitted the Japanese automaker greatly, allowing it to gain profit, as its products could be sold cheaper, globally.

In addition to that, strong vehicle sales coming from North America had also bolstered the company’s profits thanks to an increasing demand of SUVs. The strong appetite for SUVs there helped Toyota counter declining sales in Europe, Asia, Africa and its home market, Japan. On that note, it projects sales volumes to rise in said markets this year.

2016 Toyota Rav4 US-01

This year, the company predicts an average exchange rate of 105 yen to the dollar – cutting operating profit by at least 935 billion yen (RM34 billion) in the current financial year. “Until now, we benefited from currencies and our profits expanded beyond our actual capabilities. But since the beginning of this year, the tide has greatly shifted,” said Akio Toyoda, president of Toyota Motor Corp.

Meanwhile, the BBC reports that the Japanese automaker is also expecting weaker demand from key markets such as the US and China this year. Toyoda stated that without the assistance from a weaker yen, the company must work harder to boost sales. Elsewhere, the company is planning to raise research and development spending more slowly this year.

Additionally, Toyota hopes that its newly announced reorganisation exercise – which divides Toyota into smaller, more independent units – will intensify and enhance its efforts of producing desirable cars. According to Toyoda, the company had become too inflated to make decisions quickly. “I think that this year will be a test of whether we can transform our intentions into reality,” Toyoda said.

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Graham Chin

Having spent a number of years as a journalist for a local paper, a marketing executive for a popular German automotive brand and a copywriter, Graham, a true-blue Sarawakian, knew he had to take the leap back into the motoring scene - and so he did. To him, nothing’s better than cruising for hours along a scenic route, in a car that’s designed and built for that purpose.

 

Comments

  • tamau itu macam on May 13, 2016 at 6:29 pm

    with their sub-quality of their cars, below standard safety features, and bloodsucking car prices….I am very sure their sales will keep dropping….

    Who wants to pay big money for lousy cars??

    Like or Dislike: Thumb up 22 Thumb down 29
    • Samloo that who!

      Like or Dislike: Thumb up 12 Thumb down 20
      • Meanwhile, proton’s profit…….

        Like or Dislike: Thumb up 5 Thumb down 1
        • …still cannot beat the epic 77% sales loss of toyota.

          Like or Dislike: Thumb up 4 Thumb down 16
          • john otak batu on May 14, 2016 at 3:45 am

            Sales loss still can earn RM85B woh, unlike P1 that begs RM1.5B from Gov to not close shop

            Like or Dislike: Thumb up 1 Thumb down 1
          • Balance 23% global sales of 2.3m still higher than 20 years of proton global sales

            Like or Dislike: Thumb up 0 Thumb down 1
      • Proton still doing testing, not selling kah?

        Like or Dislike: Thumb up 5 Thumb down 3
        • Dun worry. I oso put ur exact concerns to camo cars by Honda, audi, Mesidis, Hyundai, Pagani, etc, etc

          Like or Dislike: Thumb up 5 Thumb down 5
    • big money on May 13, 2016 at 7:00 pm

      Toyota at least no need to be bailed out using rakyat’s money

      Like or Dislike: Thumb up 29 Thumb down 0
    • low2215 on May 13, 2016 at 7:47 pm

      dude , their profit is 85 B man , with a B , which means alot of people is buying toyota.

      Like or Dislike: Thumb up 19 Thumb down 0
      • Loler on May 14, 2016 at 11:16 am

        Of course coz sold around the world. Fot recalls oso around the world. Lol

        Like or Dislike: Thumb up 1 Thumb down 0
      • Loler on May 14, 2016 at 11:17 am

        Of course coz sold around the world. Fot recalls oso around the world. Lol lol

        Like or Dislike: Thumb up 1 Thumb down 0
  • Albert on May 13, 2016 at 6:41 pm

    Wah…Rm85 Billion in profits=32X Saudi Santa’s donation.
    It can also bailout Protong for 56 times.In other words,2015 Toyota profits can bailout protong for the next 56 years,at 1.5 Billion Rm every year.
    That amount will give Japan the ability to import 28 B 2 stealth bombers from USA,if the next President allows.
    The atomic bombed Japanese,no doubt are world class.Stupendously hardworking and profit oriented.
    Is Proton any where near them?……Miles ,miles apart.Perhaps those dudes are enjoying Roti Jala to the max.
    Toyota Japan…..it is high time a new distributor in Bolehland be appointed,You can’t bank on UMW year in year out,can you?

    Like or Dislike: Thumb up 21 Thumb down 5
    • i hope Toyota can bail out Proton. Let’s help each other, ok?

      Like or Dislike: Thumb up 4 Thumb down 5
      • Albert on May 13, 2016 at 8:26 pm

        John,ok…this time we collaborate to help Protong.
        year 2017…1.5B bailout/soft loan again
        year 2018…if loan not repaid,Toyota gasak tanjung malim,shah alam land+factories.crony creditors will not be paid.interest rates will be along’s interest rates.Gomen give corporate guarantee to Toyota.
        Deal?

        Like or Dislike: Thumb up 5 Thumb down 2
  • What about Proton?

    Like or Dislike: Thumb up 1 Thumb down 1
  • Kancil Hybrid on May 13, 2016 at 7:23 pm

    Proton untung RM85m pun jadi la.. Tak payah cerita billion2 macam mamat tu.

    Like or Dislike: Thumb up 3 Thumb down 0
  • karam singh on May 13, 2016 at 8:49 pm

    Toyota does not bother much with no 1 status seller in Malaysia. It’s sales in the world market is easily 10 times what Honda is capable off

    Like or Dislike: Thumb up 16 Thumb down 1
  • Jobless on May 13, 2016 at 9:14 pm

    Tats wat happens when u hire thebest ceo thebest marketing thebest designers…toyoda desgn rocks at the moment while Honda ,oving backwards

    Like or Dislike: Thumb up 11 Thumb down 3
    • wayang on May 13, 2016 at 9:55 pm

      The best is Malaysian keyboard warriors la

      You see Toyota earns 85billion a year and employs thousands of engineers, executives and designers to create products
      While Malaysian car enthusiasts arrmed with keyboard and a mouse condemn their products and demand Toyota to listen to their opinions on how the company should move, how their products should be designed if not they will “tapau” very soon

      Like or Dislike: Thumb up 18 Thumb down 1
  • Alibaba biz man on May 13, 2016 at 10:59 pm

    if proton could break-even, even once….pun syukur la….

    Like or Dislike: Thumb up 5 Thumb down 1
  • Toyota might as well count their profits in body bags cuz thats how much they think about their customers

    Like or Dislike: Thumb up 14 Thumb down 13
  • Sam Loo (ori1) on May 15, 2016 at 2:32 am

    As long as its not a kimchi, it will have RV

    Like or Dislike: Thumb up 3 Thumb down 1
 

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