Mass market car maker Toyota - despite selling 10.23 million vehicles last year – reveals a level of profitability that most of the world’s leading prestige carmakers would happily chose to brag about.
In terms of overall profitability, with a sky-high operating margin of 10.1 per cent during its last fiscal year, Toyota now belongs into the prestige- rather than mass-market category.
As if to add insult to injury, for the current financial year Toyota forecasts a slight dip in global vehicle sales accompanied by a contrasting uplift in operating profits to Yen2.8tn (€20.7bn) and an even higher 10.2 per cent operating margin.
The combined factors of a 7.4 per cent increase in North American vehicle sales to 2.72m units and favourable tailwinds on the currency exchange front helped Toyota, the world’s largest vehicle group by sales, to a 6 per cent rise in turnover to Yen27.2tn, in the fiscal twelve months to the end of March this year.
In the same period, operating profit for the group grew by a markedly faster 20 per cent to
Yen2.75tn (€20.5bn), elevating Toyota Group’s operating margin for the twelve months to March this year to 10.1 per cent from an already lofty 8.9 per cent the year before.
Its fiscal fourth quarter operating margin, following a 45.7 per cent jump in operating profits to Yen635.7bn, rose to 8.9 per cent from 6.6 per
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