It was revealed on Wednesday that Toyota (NYSE:
) said that, while income for the fiscal year ending in March had
dropped, it is expecting profit for the current fiscal year to
more than double to 760 billion yen.
That number will be helped, the company said, by new models of
vehicles, as well as an improvement in the global economy. It
would certainly be a welcome improvement for Toyota, which has
been drastically under-achieving of late, struggling to get even
close to the record 1.2 trillion yen that it pulled in back in
Not long after that, with the party streamers barely put back
in the drawer, the company suffered an historic loss in the midst
of the global economic crisis. A recall crisis didn't help the
company's cause at all.
According to a statement from TM, net income fell 31% from the
previous year to 283.6 billion, thanks in no small part to the
disasters that have hit Japan as well as the strong Japanese
It is tough on Toyota, which had performed remarkably well in
the January-March quarter, quadrupling profit to 121 billion yen
compared to the previous year.
"In recent years, we have suffered periods of hardship. This
year, I am determined to show tangible results of all our
internal efforts in order to reward our stakeholders who
supported us during these difficult times," said CEO Akio
However, the company is predicting good times ahead, and it
believes that strong additions to the lineup will boost profit to
760 billion yen in the next year through March 2013.
If that comes off, they will be TM's best results since 2009,
though analysts were still hoping for better. An average
prediction came in at 817.7 billion yen.
Before the announcement, share in TM closed at 3,145 yen in
Tokyo. Shares had gained 22.6% this year.
It sounds as if Toyota is placing an enormous amount of faith
in the new models. All of the company's eggs are in one basket.
The new vehicles include a Prius C hybrid subcompact and a fully
Whether those two prove to be as popular as TM is predicting
remains to be seen.
(c) 2012 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.