Toyota says quarterly profit up 10% to US$5.2 billion, lifts sales forecast
Toyota on Tuesday said its net profit for the three months to June jumped 10 percent to US$ 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.