Toyota sees its profits nearly double

PanARMENIAN.Net - Japanese carmaker Toyota has seen its profits nearly double, boosted by the yen's weakness and cost cutting, according to BBC News.

It made a net profit of 1.82 trillion yen ($17.8bn) in the year to March 31, up from 962bn yen a year ago. But that was lower than its February forecast of 1.9tn yen profit.

Japan's firms, especially those relying on exports, have benefited from the weakness in the yen which helps lift their profits when they repatriate their overseas earnings back home.

The Japanese yen has weakened by nearly 18% against the US dollar since the start of 2013 amid aggressive policy measures by the government.

Toyota, the world's biggest carmaker, said the yen's weakness boosted its profits by nearly 900bn yen during the past financial year.

The firm also issued a weaker-than-expected forecast for the current financial year. It expects its profit to fall to 1.78 trillion yen in the financial year to March 31, 2015.

The firm said its sales in Japan were likely to decline this year. It expects to sell nearly 1.45 million units of its Toyota and Lexus brand vehicles in Japan in the current financial year, down from 1.65 million in the previous 12 months.

Analysts have been cautious about prospects for Japan's car manufacturers this year, not least because of the rise in the country's sales tax.

Japan increased the rate of its sales tax - also known as consumption tax in the country - to 8% from 5% from April 1 this year.