(MENAFN- Gulf Times) Toyota reported record annual net profit of more than $30bn yesterday but the world's largest automaker by sales warned that the current year would be less spectacular.
Helped by a weak yen and strong hybrid vehicle sales, the Japanese giant's bottom line doubled to ¥4.94tn ($31.9bn) in the year to March while revenues rose 21.4% to ¥45.1tn, also an all-time high.
"Under the banner of 'carbon is the enemy', Toyota has done what it can to achieve carbon neutrality and make hybrid cars more prevalent," said chief financial officer Yoichi Miyazaki.
"Since the debut of the Prius model, that effort has gradually paid off, creating the perception even in the American market that hybrids are the main player," Miyazaki told reporters.
For this year it expects net profit of ¥3.57tn, down 27.8%, because of investments in "growth areas" such as electric and hydrogen cars, as well as in "human capital".
Sales will rise 2.0% to ¥46tn.
"We have to accept that there are certain areas where we're significantly behind China...But as a Japanese company fighting in the auto industry, we know we cannot let this lead widen further. We're going to think about how to pull off a game-changer," Miyazaki said.
Toyota last month said it sold 11.1mn vehicles across all brands in the 2023-24 fiscal year, up 5% and the first time they have exceeded 10mn.
A big factor was a 31% jump to 3.7mn in sales of hybrid vehicles - combining internal combustion engines and batteries - like the Corolla compact car and the RAV4 sports utility vehicle.
Sales of purely electric car sales were a much more modest 116,500.
Toyota pioneered hybrid cars with its popular Prius model, but it and other Japanese automakers have been criticised for being slow to embrace purely battery-powered vehicles.
But its strategy appears finally to be paying off with signs that consumers are going cold on pure EVs because of high prices and worries about reliability, range and a lack of charging points.
In 2023, China overtook Japan as the world's biggest vehicle exporter, a change fuelled by the country's dominance in electric cars.
Toyota was also left standing by Elon Musk's EV giant Tesla in terms of market value, but the gap - almost $1tn in 2021 - has now narrowed sharply.
Toyota's share price has soared 34% this year, while that of Tesla - which sold 1.8mn vehicles last year - has dived 28% over the same period.
Toyota is however still aiming to sell 1.5mn EVs annually by 2026 and 3.5mn by 2030.
It is also hoping to mass-produce solid-state batteries, a potentially hugely important technological breakthrough that could mean faster charging times and greater range.
Toyota's unit sales rose 13.8% in North America in 2023-24, while climbing 10.8% in Europe and 8.7 % in Japan, despite a production halt at its Daihatsu unit.
In China, the world's biggest electric car market where local firms such as BYD dominate, Toyota sold 1.9mn vehicles, a rise of only 1.4%.
Toyota shares closed down 0.55% at ¥3,579.0 in Tokyo.
Disney
Disney reported higher revenues on Tuesday on a strong performance by its theme parks division and an improving streaming business, but a write-down in the company's India business resulted in a small loss.
The company achieved profitability in its entertainment streaming segment following subscription additions of more than 6mn in Disney+, a landmark after years of losses.
But company officials signalled they expect the division to have a loss in the current quarter, in part due to weaker subscriber counts.
The entertainment giant also offered a cautious outlook on its parks division.
While Disney is still recording "healthy" demand, "we are seeing some evidence of a global moderation from peak post-Covid travel," Chief Financial Officer Hugh Johnston said on a conference call.
Shares of Disney fell sharply on the results, although analysts noted that the company's share price has risen significantly so far in 2024 prior to the report.
For its fiscal second-quarter ending March 30, Disney reported a $20mn quarterly loss following the $2.1bn impairment in Star India. Revenues rose 1.2% to $22.1bn.
The large reduction at Star India relates to combining its India business with India's Reliance Industries, a deal announced in late February.
Disney said it was on track for full-year profits on the entire streaming business after years of losses. This includes the ESPN+ sports network, which pushed the combined business into a loss in the just-finished quarter.
Disney Chief Executive Officer Bob Iger expressed confidence on streaming, in part because of an impending crackdown on improper password sharing.
"That will roll out in earnest across the globe in September," said Iger, who described feeling "quite bullish" in light of Netflix's success in addressing the issue.
"We're going to balance sequels with originals, particularly in animation," said Iger, who described the company as "leaning" back somewhat to sequels.
"There's a lot of value in sequels, obviously, because they're known and it takes less in terms of marketing," Iger said.
The entertainment giant cited Walt Disney World Resort, Hong Kong Disneyland and the company's cruise division as areas of strength in parks and experiences, but saw lower results at Disneyland Resorts.
Asked about succession, Iger said the board is "heavily engaged" in the process and that he is confident "they will choose the right person at the right time."
Ferrari
Italian luxury carmaker Ferrari on Tuesday posted a double digit rise in both profits and sales for the first quarter of 2024, and confirmed its full-year guidance.
Net profit increased by 19 % to €352mn ($379), more than expected by the consensus of Factset analysts who were counting on €335mn.
Revenue increased by 11% to €1.58bn, in line with analysts' expectations.
However, Ferrari's shares on the Milan stock exchange fell by 4.7% amid a sense among some analysts that the firm's annual objectives are not sufficiently ambitious.
For the whole of 2024, the group continues to expect revenue growth of more than 7% to more than €6.4bn euros and gross operating income, or EBITDA, to rise by a similar amount €2.45bn.
Ferrari delivered a total of 3,560 cars worldwide between January and March, seven fewer than in the same period in 2023.
"The start of the year was very positive," commented chief executive Benedetto Vigna, adding: "Our value over volume strategy continues to be successful." Vigna highlighted the "enrichment of our product range" thanks to the launch of the two-seater 12Cilindri and the 12Cilindri Spider.
By 2026, the manufacturer is banking on revenue riseing to €6.7bn, a goal Ferrari intends to achieve by launching 15 new models between 2023 and 2026.
Deliveries in the first quarter were driven by the 296 family models, the Purosangue SUV and the Roma Spider. Deliveries of limited-edition Daytona SP3 from the Icona range also increased.
Europe, the Middle East and Africa remained Ferrari's main market in the first quarter, with 1,573 vehicles delivered, up 3%.
BP
British energy giant BP has said net profit slumped 72% in the first quarter, as gas prices declined from a year earlier.
Profit after tax tumbled to $2.3bn from $8.2bn in the first three months of 2023, BP said.
Total revenue dropped 13% to $48.9bn.
Alongside the results, BP announced "at least" $2.0bn in cost savings by the end of 2026.
"We are simplifying and reducing complexity across BP," chief executive Murray Auchincloss said in an earnings statement.
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