The world’s largest automaker, Japan’s Toyota Motor has announced its second-quarter profit surged 11.3%, thanks to the difference between the yen and dollar and great sales in the United States.
The global leader reported its operating profit stood at 659.22 billion yen ($5.77 billion) for the July to September period, greater than the average estimate of 13 analysts polled by Reuters, who said Toyota would rise to just 650.7 billion yen. The company’s net profit also climbed 23 % to 539.06 billion yen.
The Japanese carmaker also decided to upgrade its full-year operating profit guidance, expecting a rise of 9.1% over the previous forecast, thanks to increased earnings from exports facilitated by the decreasing yen against the dollar. Even making up for a slide in sales, the automaker forecasts operating profit of 2.50 trillion yen for the entire fiscal year (ends on March 31, 2015). The previous prediction was for 2.30 trillion yen, and the growth is in part supported by the 135 billion yen contribution from foreign exchange gains. The vehicle sales total outlook has been instead trimmed down from 9.10 million to 9.05 million units. The Japanese firm also updated its net profit estimate – it now expects to reach 2 trillion yen instead of 1.78 trillion yen – the figure also includes earnings made with joint venture partners in China.