Huge 2016 profit reported by Toyota

Huge 2016 profit reported by Toyota

Sales were down but Toyota still managed to make its shareholders a healthy dividend this year with the Japanese car company reporting revenue of $236 billion US dollars.

That figure is 4.3% up on the same period last year, while operating income (or profit) stood at $23.7 billion US dollars, a 3.8% jump.

The healthy financials come despite a downturn in Toyota sales in the period. Toyota has reported it sold 8,681,328 vehicles globally, 290,536 units fewer than the previous fiscal year. North America posted sales gains, while Europe, Asia and other regions declined.

While Toyota is expecting those global sales to bounce back this fiscal year.

In the car company’s Global Forecast it outlines predictions that global consolidated vehicle sales will be 8.9 million.

Though the car company doesn’t expect to make such large profits in the year ahead.

Christian Stadler, Professor of Strategic Management at Warwick Business School in the UK, says global currencies aren’t likely to be as kind to Toyota as they were in the previous year.

“The record profit is something that, in the main, Toyota owes to the strong dollar rather than having done anything amazing, so with the expectation that the dollar will weaken results are likely to drop dramatically next year.”

About the author

Kate Richards

Kate has always had an interest in writing and cars and now as a key member of the Behind the Wheel website team she gets to spend her days consumed by both. Aside from being a contributor and an editor at Behind the Wheel, Kate enjoys driving her Lancer EVO and walking her beloved dog, Max!

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