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Toyota projects fall in profits after bumper fourth quarter

(Sharecast News) - Toyota Motor projected a 20% decrease in profit for the current financial year on Wednesday, as it planned large investments in both suppliers and strategic initiatives after a strong fourth-quarter performance. The world's top carmaker still topped market expectations, however, with a 78% surge in operating profit from January to March.

Its full-year operating profit reached JPY 5.35trn (£27.55bn), making for the first time a Japanese firm surpassed the JPY 5trn milestone, according to Reuters.

The firm's success was bolstered by the weaker yen and a shift in consumer preferences away from purely electric vehicles (EVs) towards petrol-electric hybrids.

For the 2025 financial year, Toyota said it anticipated a 20% decline in operating income to JPY 4.3trn, as it planned to spend on "human capital" investments, encompassing support for labour costs at suppliers and dealers.

The company said it intended to inject JPY 1.7trn into growth initiatives this year, particularly focusing on artificial intelligence and software development.

Toyota's legacy in hybrid technology remained robust, constituting over a third of its 10.3 million vehicle sales in the last financial year, including its luxury Lexus marque.

However, pure battery EVs accounted for just 1% of Toyota's global sales, significantly below its previous target.

The company was aiming to sell 171,000 battery EVs in the new year.

At the close in Tokyo on Wednesday, Toyota Motor shares were down 0.56% at JPY 3,579.

Reporting by Josh White for Sharecast.com.

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