Toyota’s profit hasten to 70pc
Tokyo: Toyota has increased its profit by 70 percent, even though its sales have declined.
The Tokyo-based maker of cars such as the Prius and the Camry said Wednesday its July-September net profit rose to 438.4 billion yen ($4.4 billion) from 257.9 billion yen a year earlier.
Profits at Japanese automakers have surged in yen terms as the Japanese currency weakened against the US dollar over the past year.
A year ago, the yen was trading at about 79 to the US dollar. Now it is just under 100 to the dollar.
Toyota Motor Corp. has been the biggest beneficiary of the weaker yen, gaining 280 billion yen ($2.8 billion) in net income in the latest quarter from foreign exchange effects.
Quarterly sales slipped to 2.24 million vehicles from 2.25 million vehicles a year earlier.
Toyota last month said its global sales for January-September this year totalled 7.41 million vehicles, little changed from the previous year but outpacing.
Toyota’s growth has come largely from the popularity of the Camry, Corolla and Tundra in the US.
The company’s sales number includes heavy trucks made by Toyota’s group company Hino Motors, so the competition is hotter when such models, which GM lacks, are excluded from Toyota’s tally.
Toyota’s president Akio Toyoda likewise has stressed his determination to avoid quality lapses similar to those that led to a massive recall fiasco in the US that came on the heels of the financial crisis.
Toyota’s half-year profit rose 83 per cent to one trillion yen ($10.1 billion).
The company increased its capital spending plans by 20 billion yen ($203 million) to 940 billion yen ($9.5 billion).