Toyota Financial Services has revealed a 34.4% fall in operating income in the year to 31 March 2017, which it has largely attributed to currency fluctuations.
Operating income for Toyota’s financial services arm fell to ¥222.4bn (£1.51bn) between 1 April 2016 and 31 March 2017, a drop of ¥116.7bn. Net revenues also decreased, falling by 3.8% year-on-year to ¥1.82trn.
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Toyota Motor Group saw operating income fall by ¥859.5bn, a 30.1% year-on-year drop. The results mark Toyota’s first annual profit fall in half a decade, which the Japanese carmaker attributed to currency fluctuations slicing ¥940bn from their income.
Net revenues for the group were down 2.8% in the year to March 2017 to ¥27.7trn, while income before taxes and equity in earnings of affiliated companies fell 26.5% to ¥2.19trn over the same period.
The net income attributable to Toyota Motor Corporation fell by 20.8% in the year to March 2017, to ¥1.83bn. Toyota also noted increased spending on marketing and cost reduction efforts, and an increase in other expenses contributed to the fall in operating income.
In Europe, Toyota’s net revenues remained largely static, increasing by just 0.7% year-on-year in the year to March 2017 to ¥19.7bn whereas an ¥84.6bn fall in operating income caused an operating loss of ¥12.2bn.
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By GlobalDataIn a speech, Akio Toyoda, president of Toyota Motor Group, claimed that Toyota was dedicated to ‘enriching society through manufacturing’, and said that the results did not present the company’s strength.
He said: “While there is no doubt that we need to continue these activities going forward, I feel that the outlook of our earnings for the current fiscal year, with neither the positive nor negative impact of foreign exchange rates, honestly present the current strength of our true selves.”
Toyoda stated that Toyota would stay on track with their goal for sustainable growth.
