4:00 PM New York – Toyota Motor falls after guiding lower sales and earnings.

Toyota Motor Corporation reported fourth quarter revenues rose 9.8% to 26.29 trillion yen from 2.3 billion yen. Net income increased 4.5% to 1.72 trillion yen.

In fiscal year 2008, Toyota''s consolidated sales reached 8.91 million units, an increase of 389,000 units over the last fiscal year. In North America, vehicle sales reached 2.96 million units, an increase of 16,000 units and market share of 16.3%. In Japan, Toyota Group market share rose to 42%. Toyota estimates unit sales in the current fiscal year of 8.87 million units compared to 8.69 million units in the year completed in March 2008.

Toyota sales in North America represented 36% of total sales followed by 30% sales in Asia, 17% in Europe and 17% in Latin America and Africa.

Operating income increased by 31.7 billion yen to 2.27 trillion yen, due to positive contributions of 290.0 billion yen from marketing efforts and 120.0 billion yen from cost reduction efforts, and negative factors including 48.1 billion yen of valuation losses on interest rate swaps.

Excluding this 48.1 billion yen, operating income on a non-USGAAP basis increased substantially by 79.8 billion yen to 2.34 trillion yen. Equity in earnings of affiliated companies increased by 60.6 billion yen to 270.1 billion yen, due to strong results of joint venture companies in China.

Toyota President Katsuaki Watanabe said, """"We are facing a severe business environment. However, Toyota considers this headwind as a valuable opportunity to turn it into a more flexible and stronger company.”

Toyota also announced its consolidated financial forecast for the fiscal year ending March 31, 2009. Based on an exchange rate of 100 yen to the U.S. dollar and 155 yen to the euro, Toyota forecasts consolidated net revenues of 25.00 trillion yen, operating income of 1.60 trillion yen and net income of 1.25 trillion yen.

Toyota increased its dividend by 20 yen to 140 yen for the fiscal year and targeted payout ratio of 30% from the current 25.9% rate.

Net revenues in Japan increased by 500.5 billion yen, or 3.4%, to 15,315.8 billion yen in fiscal year 2008 compared to a year ago, while operating income decreased by 16.9 billion yen, or 1.2%, to 1,440.3 billion yen in 2008.

Net revenues in North America increased by 393.5 billion yen, or 4.4%, to 9,423.2 billion yen in the fiscal 2008 compared with fiscal 2007, while operating income decreased by 144.3 billion yen, or 32.1%, to 305.3 billion yen in the fiscal year 2008.

Net revenues in Europe increased by 451.3 billion yen, or 12.7%, to 3,993.4 billion yen in the fiscal 2008 compared with 2007, and operating income increased by 4.2 billion yen, or 3.0%, to 141.5 billion yen from a year ago.

Net revenues in Asia increased by 895.3 billion yen, or 40.2%, to 3,120.9 billion yen in 2008 compared with 2007, and operating income increased by 138.8 billion yen, or 118.0%, to 256.4 billion yen in 2008.

Net revenues in other regions including Central and South America and Africa increased 371.4 billion yen or 19.3% to 2,294.1 billion yen in 2008, and operating income increased by 60.4 billion yen, or 72.4%, to 143.9 billion yen in 2008.

Toyota Motor Corporation stock (TM: chart) fell $4.46 to $100.30 in New York trading.