Toyota swings to profit despite recall woes

By the CNN Wire Staff


TOKYO, Japan (CNN) -- Toyota returned to profit for the fiscal year ending in March, despite the continuing economic downturn and a series of recalls that rattled consumer confidence in the United States, the Japanese automaker said Tuesday.

Toyota (TM) reported an annual profit of ¥209 billion ($2.2 billion) over the last year, the company said at a news conference. That figure compares to a loss of ¥437 billion for fiscal year 2008.

This is "still in a tough storm, but we are starting to see some sun on the horizon," Toyota President Akio Toyoda said, noting the challenge his company has faced in the wake of a continuing economic downturn and the recall of some 10 million of its cars.

Net revenues for the fiscal year decreased of 7.7% compared to 2009, while operating revenue for the year recovered from a loss of ¥461 billion to a profit of ¥147.5 billion, the company announced. Cost-cutting measures helped make Toyota profitable.

Vehicle sales for the fiscal year totaled 7.24 million units, a decrease of 330,000 units from the preceding fiscal year, Toyota said. Sales were up by 218,00 vehicles in Japan and another 74,000 units across the rest of Asia.

The story was different in the United States and Europe, where sales fell by 114,000 and 204,000 units.

Toyota cars and trucks have been the subject of at least three separate major recalls in the past year.

One was for the "sticky pedal" situation in which gas pedals, as they age, begin to stick in a partially depressed position. Another was for gas pedals that can stick on some floor mats, and a third was for braking problems on Toyota Prius hybrid cars.

In April, Toyota indicated to the U.S. government it would pay a $16.4 million fine -- the largest ever against an automaker -- for failing to notify the Department of Transportation of the "sticky pedal" defect for at least four months.

Despite the problems, Toyota announced in late April that production soared more than 80% in March compared to year-ago levels.

Toyota on Tuesday predicted sales growth across the board for 2011, pinning its hopes on green cars and the emerging markets like India and China. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,841.98 -86.22 -0.48%
Nasdaq 4,919.64 -19.69 -0.40%
S&P 500 2,080.15 -9.31 -0.45%
Treasuries 2.24 0.06 2.94%
Data as of 9:38pm ET
Company Price Change % Change
Bank of America Corp... 16.29 -0.06 -0.37%
Apple Inc 125.01 -0.79 -0.63%
Microsoft Corp 46.28 -1.32 -2.77%
Chesapeake Energy Co... 14.72 -1.14 -7.19%
Frontier Communicati... 5.94 -0.80 -11.87%
Data as of 4:03pm ET
Sponsors

Sections

Keep an eye on you burgers. After 13 years, the Hamburglar is back at McDonald's. More

Good news for people in Texas and North Dakota: McGladrey chief economist Joe Brusuelas believes the painful period of layoffs is largely done. More

Big Idea Week kicked off in New York City, and it brings the entrepreneurship of the tech industry -- and its workers -- into the classroom. More

Lori Greiner, an investor on ABC's "Shark Tank" offered advice for women looking to be more successful in business. More