Despite four consecutive quarterly losses in the North American market, Toyota says it is poised for a return to profitability by 2010. The Japanese automaker posted a $38.7 million loss last quarter, but plans to be back in the black during the fiscal year 2010, beginning April 1.

Additionally, Toyota says it will reach its U.S. sales goal of 1.6 million units this year. Toyota’s U.S. sales have plummeted 34.2 percent this year, but the automaker’s sales were only down 11.4 percent last month – thanks in part to the cash for clunkers program.

Toyota’s newfound focus on cost cutting has also improved the company’s fiscal outlook, with full-year losses expected to total $7.85 billion. Previous estimates suggested Toyota would be $8.9 billion in the red by the end of the fiscal year.

Toyota has also managed to keep inventory levels in check, now tallying a 29-day supply of vehicles — the lowest level of any automaker in the U.S.

However, Yoshimi Inaba, Toyota’s North American chief, says that increased sales must accompany Toyota’s cost cutting measures if the automaker is to return to profitability. “My imminent task is to bring our North American business back in the black,” Inaba told Automotive News. “Cost cuts are important, but there is a limit to them. We need to sell large volume.”

Inaba expects total U.S. vehicle sales to top out at about 10 million units this year.

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