Toyota’s Profits Surge on Currency, Cost Cutting, U.S. Tax Cut

Toyota Motor Corp.’s net income in October-December jumped 93% to 942 billion yen ($8.6 billion), thanks to cost cutting, favorable exchange rates and lower U.S. corporate taxes.

The company’s operating for the period climbed 54% to 674 billion yen ($6.2 billion). Revenue for the period rose 7% to 7.6 trillion yen ($69.5 billion).

Results, which complete the first nine months of the company’s fiscal year, prompted Toyota to again boost its financial guidance for the full year. The carmaker now expects its operating income will rise 11% to 2.2 trillion yen ($20.1 billion), and its net income will surge 31% to a record 2.4 trillion yen ($21.9 billion).

Toyota’s worldwide retail sales for the fiscal third quarter slipped less than 1% to 2.63 million units. The totals include deliveries by the company’s Daihatsu minicar and Hino commercial truck affiliates. Toyota affirms its earlier expectations that its volume for the full fiscal year ending March 31 will gain only 50,000 units to 10.3 million units.

In North America, Toyota’s units sales in October-December dipped 1% to 735,000 units. Revenue advanced 3% to 2.8 trillion yen ($25.6 billion). But operating profits plummeted 55% to 33 billion yen ($302 million), largely because the company’s mix of SUVs and trucks wasn’t big enough to match market demand.

Toyota’s operating profit in Japan more than doubled to 471 billion yen ($4.3 billion) in the fiscal third quarter. Vehicle retail sales in the country totaled 552,000, up 3%.

In Europe, the company’s quarterly operating profit jumped 29% to 23 billion yen ($213­ million). Unit sales advanced 2% to 237,000 vehicles.