Toyota reported record profit for the fiscal first quarter, up 94%, thanks to streamlined costs and weaker yen.
This is another sign that the auto industry in Japan continues to increase and the country’s exporters post positive results after the dramatic yen drop, part of Prime Minister Shinzo Abe’s pro-growth economic strategy. Toyota is the only automaker among its Japanese peers to increase its full-year target only three months after the beginning of the business year.
For the three months ended June, Toyota reported a net profit of 562.19 billion yen ($5.6 billion), an increase from 290.35 billion yen during the same period last year, and above the analysts’ estimate of 441.5 billion yen. The automaker has also increased its net profit target for the fiscal year ending March 2014 by 8%.
As Toyota is confident regarding the 2013 outcome, it has also announced its plans to increase production this year. The automaker aims at manufacturing 10.12 million vehicles and sell 9.96 million by the end of this year, an increase from 9.94 million and 9.91 million units respectively. Toyota has also streamlined its broader operations to help the company comply with the promise of keeping production in Japan to record highs.
Revenue increased to 6,255 trillion yen during the quarter from 5.502 trillion, and the operating profit jumped 87.9% to 663.38 billion yen from 353.14 billion. For the fiscal year ending March 2014, Toyota has increased its net profit target to 1.480 trillion yen from 1.370 trillion yen, and operating profit to 1.940 trillion yen from 1.800 trillion yen.