Like The Herald Business Journal on Facebook!
The Herald of Everett, Washington
Heraldnet.com

The top local business stories in your email

Contact Us:

Josh O'Connor
Publisher
Phone: 425-339-3007
joconnor@heraldnet.com

Jody Knoblich
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049
jknoblich@heraldnet.com

Jim Davis
Editor
Phone: 425-339-3097
jdavis@heraldnet.com

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

Toyota quarterly profit triples, raises forecast

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
By Yuri Kageyama
Associated Press
Published:
TOKYO --The company's optimism comes despite a sales plunge in China, where a territorial dispute over tiny islands known as Senkaku in Japan and Diaoyu in China has set off protests and a boycott of Japanese cars in recent months.
Quarterly sales improved 18 percent to 5.4 trillion yen ($67.6 billion) as the demand for Toyota vehicles picked up across all major regions, including North America, Europe, Japan and Asian nations other than China.
Executive Vice President Satoshi Ozawa said Toyota had recovered from last year's disaster-related parts shortages and was able to boost profits despite the disadvantage of a strong yen. A strong yen erodes the value of overseas earnings of Japanese exporters such as Toyota.
"We have revised the forecast we announced at the end of the first quarter to reflect the progress we have been making," Ozawa said.
For the fiscal second quarter, Toyota sold 2.2 million vehicles around the world, up from 1.8 million the same period the previous year.
It now expects to sell 8.75 million vehicles for the full business year through March 2013, up by more than a million vehicles compared to the 7.35 million vehicles sold the previous year.
But the latest projection is 50,000 vehicles fewer than the 8.8 million vehicles Toyota projected in August. Toyota said the drop comes from the sales slump in China, as well as Europe.
Toyota's vehicle sales in China dropped to about half of last year's levels in September to 44,100 vehicles from 86,000 the year before. In August, Toyota sold 75,280 vehicles in China, down 15 percent.
Toyota, which makes the Prius hybrid, Camry sedan and Lexus luxury models, had planned to sell 1 million vehicles in China this calendar year. Now, it says it expects to sell about 850,000 vehicles this year because of the anti-Japanese sentiments.
The China effect is expected to erase 30 billion yen ($375 million) from net profit for the year through March 2013, Toyota said.
Still, Toyota has widened its lead over General Motors Co. in global vehicle sales, selling 7.4 million vehicles around the world through September, and 450,000 more than General Motors, which says it sold 6.95 million cars and trucks.
GM was the top-selling automaker for more than seven decades before losing the title to Toyota in 2008. Last year, Toyota sank to No. 3 after GM and Volkswagen AG of Germany, as it got hit with the earthquake and tsunami in northeastern Japan and the Thai floods later that year.
Although Toyota lost 20 billion yen ($250 million) in operating profit from an unfavorable exchange rate, it gained 160 billion yen ($2 billion) through cost-reduction efforts during the latest quarter, the company said.
Nomura Securities Co. auto analyst Masataka Kunugimoto said in a report last month the damage to Toyota's bottom line from the sales decline in China would be small as Toyota gains sales in other markets such as North America, Southeast Asia and Brazil.
"Profits are expected to expand further," he said.
------
Follow Yuri Kageyama on Twitter at www.twitter.com/yurikageyama

MORE HBJ HEADLINES

CALENDAR

Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

Market roundup