Toyota Expects Slow Sales, Profit Growth

Toyota Yaris Pays Respect to Hip Hop. (PRNewsFoto/Toyota Motor Sales, U.S.A., Inc.) (Pr Newswire)

Honda and Nissan saw profits decline in the latest quarter.

Toyota President Katsuaki Watanabe was typically understated when asked about the prospects of beating GM.

"Rather than think about other companies, I feel that we must do our utmost to satisfy customers around the world," he said. "There is plenty left for us to do."

He said he was worried about his workers becoming smug and stressed that he aims to boost sales in "every region" around the world.

"We aren't just chasing numbers," he told reporters at a Tokyo hotel. "We must continue to pursue better quality."

In the year ended March 31, Toyota's profit rose 20 percent to 1.64 trillion yen ($13.7 billion) as sales rose 14 percent to 23.9 trillion yen ($199.5 billion).

Toyota is projecting profit for the fiscal year through March 2008 at 1.65 trillion yen ($13.8 billion) on sales of 25 trillion yen ($209 billion).

Toyota also expects to sell 8.89 million vehicles, up 4 percent from 8.5 million sold in the fiscal year just ended.

Despite a profit growth forecast for the current fiscal year, Toyota is faring better than U.S. rivals.

Detroit-based GM, the world's largest automaker the last 76 years, is seeing its U.S. market share shrink, and has announced a restructuring plan to stem billions in losses it racked up in 2005 and 2006. Earlier this month, GM reported a $62 million profit in its first quarter.

Toyota sold 2.35 million vehicles worldwide in the January-March period, surpassing the 2.266 million vehicles GM sold in the quarter.

GM sold 9.17 million vehicles in 2005, and 9.09 million last year. In 2006, Toyota's global production was about 9 million vehicles, while GM and its affiliates produced 9.18 million vehicles worldwide.

Toyota shares, which have gained about a fifth in value over the past year, fell 0.6 percent to 7,200 yen ($60). The market closed before the earnings were announced.