Toyota’s bright outlook

Toyota
reported a $2.2 billion profit for the three months ended 30 June, reversing a
nearly equal loss in the year-earlier period and it increased its sales and
profit forecast for the half-year ending 30 September.

The world’s largest automaker now
expects to sell 7.38 million vehicles worldwide for the year ending 31 March 2011.
Previously it forecast sales of 7.29 million vehicles.

The strong quarterly profit was
driven by Toyota’s growth in emerging markets such as China and that a series
of quality recalls in the U.S. have not hurt its performance.

Senior managing director Takahiko
Ijiichi said the strong yen, the end of eco-incentives in Japan and uncertainty
in the U.S. economy could have a negative impact later this year.

Even so, Toyota’s global revenue
rose 27 per cent to about $56.6 billion between April and the end of June.
Total vehicle sales rose 30 per cent from a year earlier to 1.82
million.

The results show Toyota’s continued
dependence on North America, where it converted a year earlier loss of about
$187 million into an operating profit of $1.27 billion, despite recalling more
than 8 million vehicles, mostly for the risk that sticking gas pedals or floor mat entrapment can cause sudden
acceleration.

In its home market Toyota narrowed
its year-earlier loss of $2.46 billion to $320 million. In Europe, the
automaker cut its loss to about $79 million from $237 million. It made money in
Asian nations outside of Japan as well as in Central and South America and
Africa.

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