Toyota Q4 net profit up 9pc, more growth ahead

Tokyo, May 9: Toyota Motor Corp. posted a stronger-than-expected 8.9 percent rise in quarterly net profit on buoyant sales in Western markets, and forecast more growth this year as it adds production capacity all over the world.

Net profit for January-March -- a quarter that saw Toyota it overtake General Motors Corp. as the world's biggest automaker -- was 440.10 billion yen ($3.68 billion), ahead of a consensus estimate of 416.1 billion yen in a poll of 22 brokers by Reuters Estimates.

Fourth-quarter operating profit fell 2.8 percent to 570.50 billion yen.

For the year to end-March 2008, the world's most profitable carmaker forecast net profit to rise to 1.65 trillion yen from 1.64 trillion yen in 2006/07.

It sees operating profit growing to 2.25 trillion yen from 2.24 trillion yen last year, for a seventh straight year of record earnings.

Sales at Toyota, a company valued at $216 billion -- more than 12 times the market capitalisation of GM -- are advancing in stagnant U.S. and European markets driven by models such as the Camry sedan and RAV4 crossover as local brands struggle to hold their own.

In the year to end-March, the Toyota group, which includes minivehicle maker Daihatsu Motor Co. and truck maker Hino Motors Ltd., produced 9.077 million vehicles worldwide, up 7.3 percent.

Toyota is this year set to end GM's 76-year reign as the world's biggest automaker after the U.S. group last week forecast annual global sales of 9.2 million vehicles against Toyota's plan to move 9.34 million.

Toyota shares fell 5.2 percent in January-March, slightly better than Tokyo's transport sector subindex ITEQP, which fell 6.1 percent, but underperforming a 0.4 percent gain on the main Nikkei average.

Reuters