Toyota Motor Corp. announced its fourth quarter and FY15 financial results on Friday. The biggest automaker in the world reported an upsurge of 6% in its revenue and reached $248.98 billion. The company’s operating income rose by 20% on a year over year basis to 2.75 trillion yen, and operating margin stood at 10.1% in the FY.
Toyota Motor posted $19.87 billion in annual net income up 19% against last year. The company posted earnings of 687.66 yen a share increased by 112.74 yen compared to previous year. For the latest quarter, the net income surged by 50%.
Furthermore, the automaker has delivered robust guidance for the upcoming FY16. The company is most likely to report $20.14 billion in record revenue for the FY ended on March 31 next year.
The car makers announced record revenue in the quarter because of weakling Japanese yen and high sales of SUVs in United States and big size trucks. Akio Toyoda, President of Toyota Motor expressed his views and said the robust results “favorable foreign exchange and cost reduction efforts,” as per Wall Street Journal. Such promising factors equalize the low sales and high expenditures of the company, said Mr. Toyoda.
Meanwhile, Toyota is looking to cut its production costs by its new initiative namely Toyota New Global Architecture. The amount drawn from this initiative is going to be used to upgrade vehicles.. The very first vehicle from this program is most likely to be a Prius redesigned.
During FY15, the company sold approximately 8,971,864 vehicles all over the world, less than 144,169 vehicles sold in fiscal year 2014. Last year, it was the number one car seller surpassing German auto manufacturer Volkswagen and General Motors Co.
During the few years, Toyota has been on “International pause” as it faces difficulties to enhance quality and eliminate overcapacity. It has changed now, as the company has expanded its international market spending to increase production. Earlier in April, the company expanded China plant and declared $1.4 billion if the investment to establish a latest plant in Mexico.
Keeping in mind the latest expansion steps, Mr. Toyoda stated, “This year is going to be a major turning point for Toyota on whether it can take a steady step toward stable growth or whether it will go back to its old ways.”
Toyota stock is currently witnessing an upward movement of approximately 2.5% to $141.35 after reporting financial results. Its stock has increased 12.2% since January this year.
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