Automaker is reinvesting profit in next-gen EVs, software and AI. TOKYO – CEO Koji Sato wrapped his first year at the helm of Toyota by driving profit up 77 percent in the latest quarter to rack across-the-board record results as the world’s biggest automaker bankrolls piles of cash to plow into next-generation technologies. The automaker did not skip a beat in saying how it would reinvest the bonanza. The company said it would boost investment in growth technologies such as electrification, software and artificial intelligence by 42 percent to 1.7 trillion yen ($11.24 billion) in the current fiscal year. Toyota will also spend billions more on improving human capital, including efforts to support suppliers and dealers. Those outlays will tally about 380.0 billion yen ($2.51 billion). The outlays are so heavy they will eat into earnings this fiscal year. Ever-conservative Toyota forecast that operating profit and net income will actually fall in the current fiscal year ending March 31, 2025, retreating from the just-achieved records. The slowdown is part of an intentional pause Sato outlined earlier this year as part of an effort to regroup and stay profitable for the long run after sprinting to record sales and production. “We need this time of plateau for our long-term future growth,” Sato said at a Tokyo news conference. “We would like to make proactive efforts for future sustainable growth.” In the company’s just-ended fiscal fourth quarter ended March 31, Toyota’s operating profit soared 77 percent to 1.11 trillion yen ($7.34 billion), from 626.9 billion yen ($4.14 billion) a year earlier. Toyota delivered a stellar double-digit operating profit margin of 10.0 percent in the quarter, up from 6.5 percent the year before. Net income nearly doubled to 997.6 billion yen ($6.59 billion) in January-March, from 552.2 billion yen ($3.65 billion) a year earlier. Global revenue rose 14 percent to 11.07 trillion yen ($73.17 billion) in the quarter. Toyota stormed ahead as the global semiconductor shortage eased and customers snapped up the company’s trademark gasoline-electric hybrid vehicles. The company cranked up its global manufacturing machine to record output. Favorable foreign exchange rates also helped, bolstering yen-denominated earnings and adding 305.0 billion yen ($2.02 billion) to operating profit. Consolidated global sales declined 7.9 percent to 2.15 million units in the quarter, including shipments from the company’s Daihatsu minicar and Hino truck-making subsidiaries. North American sales rose 18 percent to 655,000 units; Europe increased 13 percent to 308,000. Deliveries in the home market of Japan tumbled almost by half to 363,000.
Zachery Archie
7mo
How do I get them some info on a new anti collision technology ?
Head of Global Sales @Giftee | Founder @Ulpa
7moReading your article, I was reminded of this quote in the NYT (link below) from years ago, when the exchange rate was 90 JPY to 1 USD... "For every yen that the Japanese currency gains in value against its assumed dollar rate of ¥90, Toyota says, it loses ¥30 billion, or $357 million, in operating profit."... What does this stat look like now that the yen is still weakening past 160 JPY to 1 USD? https://www.nytimes.com/2010/09/03/business/global/03toyota.html#:~:text=The%20difference%20is%20laid%20bare,%24357%20million%2C%20in%20operating%20profit.