Toyota Profit Surges 94%

Toyota Motor Corp. reports that its net earnings jumped 94% to 562 billion yen ($5.6 billion) in the fiscal first quarter ended June 30.

Revenue rose 14% to 6.3 trillion yen ($63.2 billion). Operating income surged 88% to 633 million yen ($6.4 billion), mainly because of more favorable exchange rates and cost cutting.

The company's operating profit margin of 10.6% for the quarter compares with 6.5% for Honda and 4.8% for Nissan.

Global vehicle sales slipped 36,700 units to 2.23 million cars and trucks. Volume was hurt by sales declines of 9% to 525,800 units in Japan and 8% to 192,500 vehicles in Europe. Quarterly demand in North America rose 4% to 688,700 units.

Toyota confirms it plans to produce 10.1 million vehicles, including those of affiliates Daihatsu and Hino, in the full fiscal year ending March 31 an all-time record for any carmaker. It expects to sell just under 10 million units during the 12-month period. The company adjusted its regional sales forecasts by adding 100,000 sales in Japan and reducing volume by 60,000 units in Asia, 30,000 units in North America and 10,000 units in Europe.

Toyota also boosted its financial forecast for the current fiscal year. The company now predicts revenue of 24 trillion yen ($243 billion), up 2% from the previous estimate and 9% higher than last year. Net income is now expected to reach 1.48 trillion yen ($15 billion), up 8% from earlier guidance and 54% above the previous 12-month period.