...Leading Global Automaker: Toyota Motor Corporations (Toyota) ratings reflect its leading global positions, wide product range across the premium and mass market segments, geographic diversity, economies of scale, and its strength in hybrid vehicles. Stable Profitability: Fitch Ratings expects Toyota to maintain an EBIT margin (industrial operations) at or above 6% in the financial year to March 2015 (FY15) and FY16 as it benefits from continued cost-efficiency measures. However, larger-than-expected volume declines in Japan and certain emerging markets, and heightened competition in key markets such as the US, could erode profitability. Toyotas profitability in FY14 was boosted by a weaker yen, which depreciated by around 20% against the US dollar over the period. As a result, the EBIT margin on industrial operations rose to 8.2% from 4.8% in FY13. Its EBIT margin was 10.1% in 1QFY15, driven primarily by cost reductions. Fading Weak Yen Benefits: We expect the boost to profitability from...
