Toyota FY profit nearly doubles as hybrid sales surge, outlook weaker
Toyota Motor Corp (NYSE:TM) (TYO:7203), the world’s biggest automaker by vehicle sales, clocked a sharp increase in its annual profit on Wednesday as sales were bolstered by increased demand for its hybrid offerings.
But the car maker offered a more sobering outlook for the current year, as softer economic conditions in its biggest markets heralded weaker overall sales.
The Japanese automaker clocked operating income for the year to March 31, 2024, of 5.35 trillion yen ($34 billion), compared to a profit of 2.73 trillion yen for the prior year.
The increase was driven chiefly by stronger overall revenues, which also benefited from weakness in the Japanese yen.
But the biggest sales driver for the year was electrified and hybrid vehicle sales, which rose to nearly 3.9 million vehicles in fiscal 2024 from 2.8 million vehicles the prior year.
The automaker’s North American sales also increased, and were the biggest portion of its overall sales. Toyota sold over 2.8 million vehicles in North America in 2024, up from 2.4 million seen last year.
Toyota offered a somewhat sobering outlook for overall vehicle sales in the current fiscal year, at an estimated 10.95 million vehicles compared to 11.09 million in fiscal 2024.
Operating income is expected to fall to 4.30 trillion yen in fiscal 2025, weaker than Bloomberg forecasts of 5.34 trillion yen. Net income is expected at 3.57 trillion yen, down from 4.94 trillion yen in 2024.
Still, the automaker expects hybrid sales to remain robust, and forecast sales of about 4.8 million vehicles in fiscal 2025.
Toyota, which had pioneered hybrid car technology with its Prius model nearly 30 years ago, saw a resurgence in sales of the vehicle class through the past year, as cost-conscious customers drifted towards cheaper offerings in the sector instead of more expensive, fully electric vehicles.
Toyota also said on Wednesday that it will buy back up to 3.04% of its shares for 1 trillion yen.