The Japanese automaker is expecting 1.5 trillion yen (USD 13.8 billion) in annual profit, a reversal after three straight years of record profits. That number could fare worse as it doesn't account for recent production stops over supply shortages caused by a major earthquake in southwestern Japan.
Toyota, which makes the Prius hybrid, Camry sedan and Lexus luxury models, has had record profits for three years straight. But the perks from a weak currency that are a boon for Japan's exporters like Toyota have dwindled in recent months.
January-March sales fell 2 per cent to 6.9 trillion yen (USD 63 billion). Sales for the fiscal year gained 4 per cent to 28.4 trillion yen (USD 261 billion).
Toyota Executive Vice President Takahiko Ijichi said cost cuts and a cheap yen had helped results for the fiscal year through March this year, offsetting falling vehicle sales, labor costs and research expenses.
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Toyota, the No. 1 automaker in global vehicle sales, sold 8.7 million vehicles for the fiscal year through March, down from nearly 9 million vehicles the previous fiscal year. Sales fell in Japan, the rest of Asia and Europe, with North
American the only major market to see rising vehicle sales.
The company expects its global vehicle sales to recover in the fiscal year through March 2017 to 8.9 million vehicles.