Business

Toyota posts 19% rise in full year net profits

Toyota sign Image copyright Getty Images
Image caption Toyota and other Japanese firms have benefited from the weak yen, which helps bring down the cost of Japanese goods sold abroad

Japan's biggest car manufacturer, Toyota, has posted a year-on-year 19% rise in net income for the 12 months to March, beating expectations.

The result comes from stronger sales in the US, together with a weaker yen.

The firm said net income increased from 2.1733 trillion Japanese yen ($18.1bn; £11.7bn), up from 1.8231tn yen a year earlier.

But it said consolidated vehicle sales decreased by 144,169 units during the period, to 8,971,864 vehicles.

Many of Japan's firms - especially those relying on exports, such as Toyota - have benefited from the weakness in the yen, which helps bring down the cost of Japanese goods sold abroad.

It has forecast a net income of 2.25tn yen for the year ending in March 2016, backed by continued strength in the US market.

Toyota's operating income for the year ending in March 2015 was also up by 458.4bn yen during the period, to 2.7505tn yen.

"Operating income improved... due to positive factors such as favourable foreign exchange rates and cost reduction efforts," said the firm's president, Akio Toyoda.

He said those positive factors had "more than offset negative factors" including increased expenses and decreased vehicle sales.

Vehicle sales decreased for the firm in Japan, where a sales tax rise has put consumers off big-ticket items.

But sales in its North American market increased by 185,775 units to 2,715,173 units.

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