Toyota announced its financial results for the April-June quarter, revealing a 1.7% increase in profit compared to the same period last year. The company’s profit for the quarter reached 1.33 trillion yen, a record high for this period. Quarterly sales also saw a 12% growth, totaling 11.8 trillion yen. The boost in profit was attributed to a favorable exchange rate and cost reduction efforts, which added 370 billion yen and 55 billion yen, respectively, in operating profit.
Despite facing a certification scandal that resulted in production halts in Japan, Toyota managed to increase its vehicle sales globally. The weak yen, particularly against the U.S. dollar, further contributed to the company’s profitability, with the currency fluctuations adding to the operating profit for the period.
Production disruptions in Japan were caused by irregularities in certification approval documentation, leading to decreased vehicle sales during the quarter. However, demand for Toyota’s hybrid models remained strong, emphasizing the popularity of these fuel-efficient vehicles that combine electric motors and gas engines.
Although Toyota sold fewer vehicles during the quarter, the company maintained its full fiscal year sales target of 9.5 million vehicles globally. Including sales projections from affiliated companies like Daihatsu Motor Co. and Hino Motors, Toyota anticipates annual global sales to reach nearly 11 million vehicles.
Looking ahead, Toyota remains committed to its profit forecast for the full fiscal year, projecting 3.57 trillion yen in profit, which represents a 28% decrease from the previous fiscal year. In comparison, Japanese automaker Nissan Motor Co. reported a significant decline in quarterly profit, while fellow automaker Honda Motor Co. is set to announce its earnings next week.