Toyota’s Quarterly Income Slips 5%

Toyota Motor Corp. reports net income of 297 billion yen ($2.9 billion) in the fiscal fourth quarter ended March 31, down from 314 billion yen in the same period a year earlier.

Results were hurt by $1.2 billion booked to settle penalties levied by the U.S. government for the company's tardiness in launching massive recalls related to unintended acceleration.

The settlements cut Toyota's fourth-quarter operating profit in North America 9% to 50.6 billion yen ($498 million).

Global revenue for the period rose 13% to 6.5 trillion yen ($63.9 billion), and unit sales climbed 6% to 2.58 million vehicles.

Toyota's full-fiscal-year net income soared 90% to 1.8 trillion yen ($18 billion). Operating income jumped 74% to 2.3 billion yen ($22.6 billion) because of cost reductions and a gain of 50.3 billion yen ($495 million) from favorable exchange rates.

Consolidated retail vehicle sales in fiscal 2014 rose nearly 5% to 10.13 million units, led by gains in North America (2% to 2.63 million) and Japan (4% to 2.37 million). Volume fell 4% to 1.61 million in Asia outside Japan.

For fiscal 2015, Toyota predicts its global retail sales, which include its Daihatsu and Hino affiliates, will grow 1% to 10.25 million vehicles. The company forecasts 8% growth in net revenue and operating income to 25.7 trillion yen and 2.3 trillion yen, respectively.

Toyota expects its consolidated net income in the current fiscal year will drop 2% to 1.78 trillion yen. The company anticipated operating income unchanged at 2.3 trillion yen.