Toyota Motor Corp. posted a 94-percent jump in net profit in the quarter ended June 30, 2013, to JPY562.2 billion ($5.5 billion), thanks to a weaker yen and high demand for its vehicles in the United States. With the impressive results, Toyota updated its results forecast for the fiscal year ending March 31, 2014 to reflect an increase in net profit of JPY1.48 trillion ($14.8 billion), up from the previous expected figure of JPY1.37 trillion.
Should Toyota achieve its forecasted net income, it would the carmaker’s best result in six years. Toyota also increased its full-year global output forecast to 10.12 million vehicles from the prior forecast of 9.94 million units.
The figure includes output at its Daihatsu Motor Co. and Hino Motors Ltd units. Should Toyota achieve the expected output, it would be the first carmaker to produce more than 10 million vehicles in a given year. The Japanese carmaker sold 8 percent more vehicles in the US in the first seven months of 2013 to 1.3 million units.
Toyota had its best month this year in July, when it sold 17 percent more vehicles to 193,394 units, boosted by hiked incentives for its Camry model. The US accounts for almost a quarter of the Toyota’s sales around the world, making the country is biggest market. Despite higher sales, Toyota’s market share in the January-July period dropped by 0.1 percentage point to 14.3 percent.
The carmaker’s impressive results are being attributed to Japan’s effort to weaken its own currently, making exports more profitable. The yen has depreciated by nearly 13 percent against the dollar this year. Toyota also posted an 88-percent surge in operating profit for the quarter -- sales minus the cost of goods sold and administrative expenses -- to JPY663.4 billion, and a 14-percent climb in revenues to JPY6.26 trillion.
The carmaker, however saw its operating profit in North America drop 30 percent in the quarter ended June 30, 2013, to JPY82.6 billion from JPY117.6 billion in the same period in 2012. Toyota posted a profit of JPY5.2 billion in Europe, which is just less than 1 percent of revenue. [source: Toyota]