The world’s biggest automaker, Toyota, is expecting this fiscal year to face a rather modest growth after in the past 18 months its profit greatly increased thanks to the Japanese currency’s steep depreciation.
Toyota’s president, Akio Toyoda, which has only been in charge for five years is offered a different challenge by the more quiet year – with the executive now accustomed to face incredibly tough events: back in 2010 the automaker faced the massive unintended acceleration recall and scandal, in 2011 the whole Japan was severely hit by the massive earthquake and ensuing tsunami, while 2012 brought the Chinese boycott of Japan made products on political tension.
Now, after the company and its president are expected later today to report last year’s record earnings – which everybody knows they’re going to be huge, the focus is on the way the executive will plan out a year that faces dwindling demand in the Japanese home market (due to a sales tax increase) and a pause in new vehicle launches.
According to analyst estimates, compiled by Reuters, the average of 24 analysts sees Toyota’s net profit for the financial year ending in March 2015 only growing by 7.4% to 2.03 trillion yen ($20 billion). This year’s record net profit is expected to double over the last, reaching an estimate of $18.6 billion.
by Aurel Niculescu
) - Thursday, May 8th, 2014 - filed under Industry
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