Toyota increased profit by 10.3% in 2020 to $20 billion

Tokyo, May 12 (EFE).- Japanese car manufacturer Toyota Motor said Wedensday it increased its net profit by 10.3 percent in the fiscal year 2020 (which ended in March), to 2.24 trillion yen ($20 billion), thanks to cost reduction and some recovery in sales.

The manufacturer’s operating profit, however, fell by 8.4 percent to 2.19 million yen and its sales turnover decreased by 8.9 percent year-on-year, to 27.21 million yen due to the impact of Covid-19 in the first half of the year, according to its financial report published Wednesday.

Toyota sold 7.6 million vehicles between Apr. 1, 2020 and Mar. 31 — the Japanese fiscal year — a 14.6 percent or 1.3-million unit decrease — compared to the 2019 fiscal year.

The automotive industry “saw its figures fall substantially” in 2020 in many regions “mainly due to the suspension of the activities of distributors worldwide, with the exception of some areas such as China, where the impact of the pandemic was reduced,” the report read.

The group’s operating profit and income were affected by “the reduction in both production volume and vehicle sales,” especially in the first half of the year (April-September 2020.)

By region, Toyota’s revenues in Japan decreased by 9.1 percent, while the fall in North America was 10.8 percent and in Europe, 6.6 percent.

The manufacturer’s turnover for the Central America, South America, Oceania, Africa and the Middle East regions fell by 11.4 percent.

Regarding the current fiscal year 2021, which will conclude in March 2022, Toyota expects its net profit to expand by 2.4 percent, to 2.3 trillion yen, with an eye on a prolonged impact of the covid-19 pandemic that will continue to affect the company’s production and supply.

The automotive group also expects its operating profit to increase by 13.8 percent year-on-year, to 2.5 trillion yen, and its sales revenue to grow by 10.2 percent, to 30 trillion yen. EFE

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