Toyota posts profit but warns of fallback

Japanese automaker Toyota's profit and revenue rose in the fiscal year ended March 31, but the company warned that profit would suffer in the current fiscal year as the yen strengthens.

Toyota's net income rose 6.4% to $21.3 billion based on current exchange ranges, bolstered by currency benefits and cost cuts. Revenue increased 4.3% to $261.4 billion. Vehicle sales fell 1% to 10.09 million units.

The company maintained its post as the world's largest automaker in the 2016 calendar year, edging Volkswagen after the German automaker faltered in the wake of its emissions scandal.

Toyota on Wednesday projected net revenue of $252.4 billion for the fiscal year ended March 31, 2017, based on a projected average yen-to-dollar rate of 105-to-1, compared to an average of 120-to-1 last year.

But net income will fall by more than a third to $14.3 billion in current fiscal year, the company projected. The stronger yen is undercutting the profitability of the company's exports from Japan.

It also predicted fiscal-year vehicle sales of 10.15 million, up slightly.

The company warned that the forecast does not reflect losses stemming from the temporary suspension of production in Japan after an earthquake struck the island of Kyushu in April.

For the latest fiscal year, Toyota's operating profit margin — the envy of the global auto industry — slipped from 10.1% to 10%. Operating income rose 3.8% to $26.3 billion.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.