Toyota Regains Spot as Most Profitable Japanese Company

Toyota Motor regained its position as Japan’s most profitable company as it reported Friday that surging domestic demand has helped boost after-tax profit by 18.9%.

The big auto firm lost the top ranking last year to the Nomura Securities investment firm, but the effects of the stock market crash last October eroded Nomura’s position.

Japan’s largest auto maker said in an annual report released Friday that its profit rose to 238.01 billion Japanese yen (about $1.78 billion) in the fiscal year ended June 30 from 200.21 billion yen ($1.50 billion) in the previous year. Sales for the year increased 11.1% to 6.691 trillion yen (about $50.04 billion) from 6.025 trillion yen ($45.06 billion).

Toyota’s total car production for the year was 2,904,071, up 9.9%, while truck and bus output edged up 0.6% to 950,621. The auto maker sold 3,831,454 vehicles in its fiscal 1988, including 2,924,760 cars. The sales included exports of 1,237,867 cars.

More Options Unveiled

After posting a record profit of 648 billion yen for the fiscal year ended June 30, 1985, Toyota sustained declines for the next two years due to the yen’s sharp rise in value against the dollar, which made exports to the United States more expensive.

Until 1986, Toyota had been Japan’s most profitable company for six straight years. In fiscal 1987, however, Toyota placed third behind Nomura and Tokyo Electric Power.

Toyota, which commands about 46% of the Japanese car market, was said to have benefited in the past year from the introduction of option-laden and expensive new models that appealed to increasingly well-heeled Japanese motorists.

New Corolla, Crown and Corona models unveiled during the year were fitted with more options, such as four-wheel drive, double-overhead-cam engines, turbochargers, anti-lock braking systems and other extras, industry analysts said.