Despite recalls, Toyota returns to profits

Japan's largest automaker Toyota reported a turnaround in operating income at 147.5 billion yen for the fiscal year ended March 31, 2010 from a loss of 461 billion, inspite of its massive global recalls and forecast profits going forward and introduction of new models.

Akio Toyoda Toyota reported an annual profit of 209.4 billion yen ($2.2 billion) from a loss of 436.9 billion yen last year and expects profit of 48 per cent in this fiscal, despite termination of production orders for NUMMI and recalling around 10 million vehicles.

Last year, the world's largest automaker, announced its worst annual loss of 436.9 billion yen ( $4.4-billion) for the fiscal year ended 31 March 2009 and forecast further losses this year on account of declining sales in the wake of the global economic downturn (See: Toyota Motor posts annual loss, forecast operating loss of 850 billion yen for FY2010)

On a consolidated basis, net revenues totaled 18.95 trillion yen, a decrease of 7.7 per cent compared to the last fiscal year. Operating income increased by 608.5 billion yen due to cost reduction of 520 billion yen and reduction in the fixed costs of 470 billion yen, the company said in statement.

Toyota's consolidated vehicle sales for the fiscal year totaled 7.24 million units, a decrease of 330 thousand units from the last fiscal year.

Founder Kiichiro Toyoda's grandson Akio Toyoda, the president of Toyota Motor Corporation said, "We are still in a stormy environment. It was a year of being constantly on alert due to a series of recalls."