Toyota Motor Corp. on Monday reported record first-half profits and sales due to cost-cutting and higher performance in all regions that more than offset the impact of a stronger yen.
Group net profit during the April-September period rose 11.4 percent from the previous year to 584 billion yen, while group sales hit 9 trillion yen, up 9.7 percent. Group operating profit surged 12.8 percent to 866.2 billion yen.
This is the fifth consecutive half-year period that group sales and group operating profit have risen.
“Our efforts to introduce products that meet customer needs and to optimize global production organization allowed us to realize growth and improved efficiency,” Director Takeshi Suzuki told a Tokyo news conference.
Toyota said the yen’s appreciation against the dollar ate up some 120 billion yen in operating profit, while development costs rose by 111.5 billion yen. A strong yen reduces the value of foreign-denominated profits when repatriated from overseas.
But the increased sales contributed 260 billion yen to operating profit and cost cutting saved 70 billion yen, more than offsetting the losses from negative factors.
The company revised its projected capital investment for the year to 1.06 trillion yen, from 990 billion yen announced in April.
As for sales volume, Toyota’s global sales in the first half — including units sold by subsidiaries Hino Motors Ltd. and Daihatsu Motor Co. — grew 12.5 percent to a record 3.57 million units.
Domestic sales came to 1.11 million vehicles, up 2.3 percent, thanks to brisk sales of the Crown Majesta luxury sedan and the Passo compact.
Sales in North America totaled 1.12 million units, up 12 percent, supported by robust sales of the Prius hybrid, Sienna minivan and Lexus RX 330 luxury SUV.
Toyota now expects that its U.S. sales alone, which reached 1.55 million units between January and September, might reach the firm’s target of 2 million, Suzuki said.
Sales in Europe amounted to 476,000 units, up 8 percent, with the Yaris compact and the Avensis enjoying brisk sales.
Sales in other regions, including Africa and the rest of Asia, reached 859,000 units, up 33.5 percent.
For the current fiscal year, despite rising raw material costs, Suzuki said Toyota hopes to generate the same amount of group profits as it did in the previous fiscal year through continued cost reduction. Toyota usually does not disclose earning projections on a group basis.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.