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.
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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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??
Samloo that who!
Meanwhile, proton’s profit…….
…still cannot beat the epic 77% sales loss of toyota.
Sales loss still can earn RM85B woh, unlike P1 that begs RM1.5B from Gov to not close shop
Balance 23% global sales of 2.3m still higher than 20 years of proton global sales
Proton still doing testing, not selling kah?
Dun worry. I oso put ur exact concerns to camo cars by Honda, audi, Mesidis, Hyundai, Pagani, etc, etc
Toyota at least no need to be bailed out using rakyat’s money
How about hyundai mitsu holden etc? Bailed out many times, so…
dude , their profit is 85 B man , with a B , which means alot of people is buying toyota.
Of course coz sold around the world. Fot recalls oso around the world. Lol
Of course coz sold around the world. Fot recalls oso around the world. Lol lol
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?
i hope Toyota can bail out Proton. Let’s help each other, ok?
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?
We are not that stupid, next!!!
What about Proton?
Stuck with spyshots.
Say that to many brand spyshots here
Proton untung RM85m pun jadi la.. Tak payah cerita billion2 macam mamat tu.
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
Tats wat happens when u hire thebest ceo thebest marketing thebest designers…toyoda desgn rocks at the moment while Honda ,oving backwards
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
You are one of them
if proton could break-even, even once….pun syukur la….
Toyota might as well count their profits in body bags cuz thats how much they think about their customers
As long as its not a kimchi, it will have RV