Toyota Profits Soar for the Sixth Year in a Row
Toyota reported that at the end of the 2005 fiscal year they had increased their sales income 18 percent from 2004, totaling 51.6 billion dollars. Even more promising for the Japanese automaker was that in the final quarter of fiscal year of 2005, January to March 2006, sales increased 39 percent over last year. Toyota reported that sales increased in every one of their regions except for Japan, where car sales have stagnated in the past year. They continue to take market share from domestic makers Ford and GM with the Toyota promise of reliable fuel efficient vehicles.
Toyota managed to sell 7.97 million vehicles during 2005, a significant increase over 2004 where they only sold 7.4 million vehicles world wide. They predict that during 2006 they will sell upwards of 8.45 million cars, increasing their sales and market share even further. While they are closing in on GM as the number one car manufacturer in the world, GM sold a monumental 9.17 million cars, so for now Toyota will be staying at number two.
Some analysts predict that despite an increase in sales, Toyota’s profits may not increase in 2006 due to an unfavorable exchange rate of the Yen on the Dollar. 2005 was a particularly good year due to a favorable exchange rate coupled with effective cost reduction inside the company. Growth from Japanese companies is not limited to Toyota alone, both Nissan and Honda, the number two and three, Japanese automakers also saw an increase in sales and profits for 2005.