Toyota posts 10 pct rise in Q2 operating profit, above expectations

A Toyota logo is seen on media day at the Mondial de l'Automobile the Paris auto show in Paris France

The Japanese auto group is now expecting operating profit to come in at ¥2 trillion ($17.6 billion), instead of ¥1.85 trillion forecast in August, based on its estimate that the yen will trade around ¥111 to the United States dollar. Without the help of the currency, it may have been hard to forecast profit growth, he said.

Last year, Toyota suffered its first drop in annual profit in five years, which it blamed on the cost of customer incentives in the key USA market. That would still fall short of the 8.97 million vehicles sold the previous fiscal year.

Nagata said the USA market remains tough as the company sees demand shifting to light trucks from passenger cars, the segment where Japanese carmakers are typically strong.

Toyota's operating income came in at ¥522.2 billion ($4.6 billion), raising 10 percent from the ¥474.6 billion in the same quarter a year earlier as yen depreciation and cost reductions made up for lower revenues in Japan and North America.

Sales in Japan were 1,087,354 units, up by 8,544.

For the fiscal year ending March 31, 2018, the company revised its consolidated vehicle sales forecast from 8.9 million units to 8.95 million units, in consideration of the latest sales trends worldwide.

An increase of ¥160 billion in marketing activities and additional ¥50 billion in expenses mainly contributed to the decrease.

Following an upbeat second-quarter earnings result, Toyota has adjusted its annual profit outlook for the second time this year as it saw better sales result in the USA market.

Nagata said that profitability has been under pressure amid a glut of used cars which help push down the residual value of new models ranging from compact to high-end vehicles and put pressure on prices.

Toyota is planning to build a new plant in the US, which will be run with another Japanese automaker Mazda Motor Corp., although its site has not yet been announced.

"The competition surrounding electric vehicles is severe.we are hoping that all kinds of firms will participate". Despite being the leader hybrid auto maker, Toyota has been relatively slow in the EV business, but as the market could rapidly expand, the company is beginning to boost its efforts in EV production.



Latest news

Much cooler with another round of rain on Tuesday
Rain chances will end Wednesday night , as temperatures drop to the low 40s in Austin and mid to upper 30s in the Hill Country. Those cloudy skies will prevent lots of daytime heating, keeping afternoon temperatures still in the 40s - around 48 degrees.

Harry Kane: 'I am not fully fit'
Harry Kane admits his fitness will have to be managed in the coming weeks as Tottenham wrestle with a mounting injury list. Dele is out with a hamstring problem, while Winks twisted an ankle in yesterday's 1-0 win over Crystal Palace .

'Severe' Air Pollution In Delhi, Visibility Reduced To 200 Metres
At least 20 flights were either delayed or affected after foggy condition prompted Delhi airport authorities to close the runway. The last time air had turned "severe" was on October 20, a day after Diwali festivities, when firecrackers were set off.

Fake News? Two Fox News Shows Broke UK Bias Rules, Regulator Finds
Ofcom said Hannity's opening monologue on January 31 about Trump's executive order did not appropriately consider alternative viewpoints.

Sia Posts Nude Picture On Twitter To Foil Paparazzi, Fans Celebrate
Sia has gone proactive after someone allegedly tried to sell her naked photos. Instead, she responded in the best way imaginable, as you'll see below.

Other news