Toy­ota says quar­terly profit up 10% to US$5.2 bil­lion, lifts sales forecast

The China Post - - WORLD BUSINESS -

Toy­ota on Tues­day said its net profit for the three months to June jumped 10 per­cent to US$ 5.2 bil­lion, cred­it­ing a weak yen and cost cuts, while it also boosted its an­nual sales forecast.

The Corolla and Camry maker’s rev­enue in the latest quar­ter rose 9.3 per­cent to 6.98 tril­lion yen ( US$ 56.3 bil­lion), as it sep­a­rately an­nounced an over­haul of its oper­a­tions in China, the world’s big­gest ve­hi­cle mar­ket.

The Ja­panese gi­ant’s ve­hi­cle sales were slightly lower at 2.1 mil­lion ve­hi­cles in the quar­ter.

“Fa­vor­able for­eign ex­change rates and cost re­duc­tion ef­forts were ( the) main pos­i­tive fac­tors, while de­creased ve­hi­cle sales and in­creased ex­penses to sup­port ini­tia­tives for en­hanc­ing com­pet­i­tive­ness were neg­a­tive fac­tors,” Toy­ota Man­ag­ing Of­fi­cer Tet­suya Otake said in a state­ment.

Ja­panese au­tomak­ers have ben­e­fited from a steep slide in the yen, which has made them more com­pet­i­tive over­seas and in­flated the value of repa­tri­ated over­seas prof­its.

Toy­ota said it now ex­pected rev­enue for the fis­cal year to March 2016 to come in at 27.8 tril­lion yen, edg­ing up from an ear­lier 27.5 tril­lion yen es­ti­mate, while net profit is forecast to be 2.25 tril­lion yen for the year.

In a sep­a­rate state­ment, the com­pany said it was re­or­ga­niz­ing its Chi­nese oper­a­tions, in­clud­ing adding a new pro­duc­tion line at one plant that would boost ca­pac­ity at the site by 100,000 ve­hi­cles an­nu­ally.

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