Toyota managed to more than double its profit for the first quarter to 313.9 billion yen ($3.2 billion) as improved sales and cost cuts worked with the weak yen helping the automaker to revive.
Toyota said it expects strong results to continue throughout the entire financial year ending March 2014 and it predicts a 1.37 trillion yen ($13.8 billion) profit, compared with 962 billion yen for the financial year ended March 2013. Prime Minister Shinzo Abe’s monetary and economic policies paid off, as the weak yen helped Japanese automakers boost earnings from overseas.
Over the past year Toyota has to deal with several obstacles beginning with the massive recall in the US market which hurt the company’s image, the financial crisis and the natural disasters in japan and Thailand which disrupted production.
“In the years since my succession as president in June 2009, we have faced many challenges. For Toyota, this was a period of perseverance but also a period of learning through extraordinary and invaluable experiences,” said Toyota President Akio Toyoda.
Analysts warned that Toyota will have to face tough competition coming from its South Korean rivals Hyundai and Kia and the US automakers GM and Ford, all fighting to get more market share and take advantage of the favorable exchange rate.
Source: The Detroit News