Japan’s Toyota reports hefty profit on cheap yen and solid car sales
Summary
Toyota reported that its net profit almost doubled in the first quarter of the fiscal year, mainly because of strong car sales in the U.S. and India and a weaker Japanese yen. Despite selling slightly fewer cars in the quarter, the company expects higher sales for the full year and aims to increase hybrid and electric vehicle production.Key Facts
- Toyota’s net profit for April-June reached 1.48 trillion yen ($9.4 billion), up from 841 billion yen the previous year.
- Quarterly sales rose 10% to 13.5 trillion yen ($85 billion) compared to last year.
- The weak yen increased the value of Toyota’s overseas earnings, adding 345 billion yen ($2.2 billion) to operating profit.
- Toyota sold 2.39 million vehicles globally in the quarter, slightly fewer than 2.41 million a year ago.
- The company expects to sell 9.7 million vehicles in the full fiscal year, higher than last year’s 9.595 million.
- Popular models in the U.S. include the Camry sedan and RAV4 SUV; in India, Urban Cruiser and Innova Hycross sold well.
- Toyota plans to boost hybrid and hybrid battery production and reduce their costs through 2030.
- Production at Toyota’s Tahara plant was halted for five days due to a 7.1 magnitude earthquake in Kumamoto, with more production impacts expected until the end of July.
- Toyota forecasts a full year profit of 3.25 trillion yen ($20.6 billion), lower than last year’s 3.85 trillion yen ($24 billion), but expects higher annual sales of 54 trillion yen ($342 billion).
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