OREANDA-NEWS. In fiscal 2015 (ended March 31, 2015), the global economy registered a mild recovery overall due primarily to China's slowing growth despite the solid performance of the U.S. economy. The Japanese economy also decelerated as the consumption tax hike pushed down consumer spending. In this operating environment, Toyota Industries Corporation and its Group companies ("Toyota Industries") undertook efforts to ensure customer trust through a dedication to quality as well as to expand sales by responding flexibly to market trends.

As a result, total consolidated net sales amounted to 2,166.6 billion yen, an increase of 158.8 billion yen, or 8%, from fiscal 2014 (ended March 31, 2014). The following is a review of operations for the major business segments.

The automobile market continued to expand overseas, on the back of strong sales in the Chinese, North American markets and upturn of European market, despite decline of sales in the Japanese market. Amid such operating conditions, net sales of the Automobile Segment totaled 1,050.7 billion yen, an increase of 44.1 billion yen, or 4%, from fiscal 2014.

Within this segment, net sales of the Vehicle Business amounted to 459.0 billion yen, a decrease of 8.0 billion yen, or 2%. Despite an increase in sales of the RAV4, sales of the Vitz (Yaris overseas) decreased. Net sales of the Engine Business totaled 192.0 billion yen, a decrease of 10.5 billion yen, or 5%. This is attributable primarily to decreases in sales of KD diesel engines and AR gasoline engines.

Net sales of the Car Air-Conditioning Compressor Business totaled 324.6 billion yen, an increase of 48.9 billion yen, or 18%. Sales in the North American and Chinese markets increased while those in the domestic market decreased.

Net sales of Electronics Parts, Foundry and Others Business totaled 74.9 billion yen, an increase of 13.7 billion yen, or 22%.

The materials handling equipment market as a whole continued to expand globally, as the Japanese and global markets in North America, Europe and China showed growth. Amid this operating climate, Toyota Industries strengthened production and sales structures and rolled out new products matched to respective markets.

In July 2014, Toyota Industries commenced sales of 1.5- to 8.0-ton capacity GENEO internal-combustion lift trucks in Japan. Equipped with a new clean engine, the lift truck reduces environmental loads and improves driver safety and operability. Under the circumstances, sales of lift trucks, a mainstay product of this segment, increased worldwide. Toyota Industries also made effort to expand its business area through manufacture and sales of lift truck attachments. These activities led to an increase in net sales of the Materials Handling Equipment Segment of 115.7 billion yen, or 14%, to 924.9 billion yen.

Net sales of the Logistics Segment amounted to 98.0 billion yen, an increase of 2.7 billion yen, or 3%. This is attributable to an increase in sales of commissioned logistics business and the cargo transport business of automotive-related parts.

The textile machinery market underperformed due mainly to an economic slowdown in China and other emerging countries in Asia. Despite sales of Instruments for textile quality measurement increased, sales of weaving machinery decreased. As a result, net sales of the Textile Machinery Segment totaled 68.1 billion yen, a decrease of 50.0 billion yen, or 7%.

In terms of overall profit, despite an increase in labor costs, depreciation costs and raw material costs, Toyota Industries recorded an increase in sales while promoting cost reduction efforts throughout the Toyota Industries Group and exchange rate fluctuations. As a result, Toyota Industries posted consolidated operating income of 117.5 billion yen, an increase of 9.9 billion yen, or 9%, from the previous fiscal year and ordinary income of 170.8 billion yen, an increase of 32.7 billion yen, or 24%. Net income totaled 115.2 billion yen, an increase of 23.5 billion yen, or 26%, from the previous fiscal year.