Image: The Associated Press
Toyota's profit for the April-June period saw a slight increase of 1.7%, reaching a record 1.33 trillion yen ($8.9 billion). This rise comes despite a temporary production halt in Japan due to a certification scandal. The favourable exchange rate and increased vehicle sales worldwide contributed to the company's strong performance.
The company's quarterly sales also saw a significant boost, climbing 12% to 11.8 trillion yen ($79 billion). A weaker yen played a role in this success, enhancing the value of overseas earnings for Japanese exporters. While the U.S. dollar recently fell below 150 yen after the Bank of Japan raised interest rates, currency fluctuations still added 370 billion yen ($2.5 billion) to Toyota’s operating profit.
Toyota's cost-cutting measures further contributed to its profit, adding 55 billion yen ($367 million). Despite these gains, Toyota faced challenges when the Japanese government discovered irregularities in certification documents, leading to production delays for some models. The company has apologized and is working to get production back on track.
Toyota's hybrid models continued to be popular, reflecting strong demand for vehicles that balance fuel efficiency with performance. However, the total number of vehicles sold globally in this quarter decreased to 2.25 million from 2.3 million the previous year.
Looking ahead, Toyota expects to sell 9.5 million vehicles globally for the full fiscal year, which includes vehicles from group companies like Daihatsu and Hino Motors, bringing the total forecast to nearly 11 million vehicles. The company maintains its profit forecast of 3.57 trillion yen ($24 billion) for the fiscal year through March 2025, despite a nearly 28% decrease from the previous fiscal year.
In contrast to Toyota's success, Japanese rival Nissan reported a dramatic 73% drop in quarterly profit, though sales rose by 3%. Honda is set to announce its earnings next week.
