Toyota sees quarterly record profit thanks to weak currency and lower expenses image

Toyota Motor Corp., the largest Japanese company and the second largest automaker in the world (interim) has announced the third consecutive year of record profit for the first quarter in its current fiscal exercise.

The record profit came after the company has started its compelling cost cutting initiative and the currency gains from repatriated earnings thanks to the weaker home currency managed to overcome the slightly lower vehicle deliveries that allowed Germany’s VW AG snatch the interim crown after the first six months of the year. Net profit for the April to June period surged 10 percent to 646.39 billion yen ($5.22 billion), operating profit climbed 9.1 percent to 756 billion yen and the revenue growth was of 9.3 percent, announced Toyota in a statement. The company’s sales advance has been affected by the internally imposed cap on production capacity surges aimed at insuring there are no quality lapses. The worldwide quarterly retail deliveries slid 0.4 percent to 2.502 million units during the period.

In China, the world’s biggest auto market, deliveries across the entire spectrum have been impacted by the surging price wars, with Toyota saying the most affected was the RAV4 SUV as rivals want to snatch more market share in the booming sector. The automaker announced its net profit guidance for the full financial year ending in March 2016 was at the same level as previously forecasted – a total of 2.25 trillion yen, though it did modify positively its revenue target to account for the surging currency gains. With a major production base in Japan, the company took home more profit as the yen has been 17 percent lower against the dollar during the past year.

Via Automotive News Europe