Toyota quarterly net income rises 4.7% image

The world’s biggest automaker posted a 5.4-billion-dollar net profit for the third quarter of the financial year, also rising its full-year forecast.

Despite a slightly sales decrease of 0.8 percent, 2015 was for the fourth year in a row in which Toyota Motors finished as the world’s best-selling automaker, topping 10 million deliveries last year. However, the relatively flat sales did not have a negative impact on company’s financial results. Toyota reported a 628 billion yen (5.4 billion dollars) net income in the third quarter, marking a 4.7 percent rise. The company said it expected to post record net income of 2.27 trillion yen (19.5 billion dollars) for the financial year ending March 31, up slightly from a previous forecast of 2.25 trillion yen (19.2 billion dollars), as income in Asia picked up due to increased production efficiencies in China. The company kept its forecast for full-year operating profit unchanged at the 2.8 trillion yen stated in November. By comparison, General Motors reported last week a record 2015 net income of 9.7 billion dollars.

However, Toyota said this forecast did not include the impact of the suspension of vehicle production in February. The automaker announced last week that, due to parts shortages resulting from an explosion that occurred on January 8 at an Aichi Steel Corporation (Aichi Steel) manufacturing facility, all production was expected to be suspended on its vehicle assembly lines in Japan from February 8 through 13, with operations scheduled to recommence on February 15.