Toyota seen to post record half-year net income of JPY955.3 billion

Article by Anita Panait, on November 8, 2013

Toyota Motor Corp. is expected to post a record half-year profit when it reports its earnings Wednesday, thanks to the weaker yen that boosted the value of Japanese cars sold abroad. According to the average of five analyst estimates compiled by Bloomberg, Toyota may post a 74-percent surge in net income for the fiscal first half ended Sept. 30 to JPY955.3 billion ($9.7 billion).

The Japanese carmaker is also expected to post JPY444.7 billion in profits in the quarter ended Sept. 30, which exceeds the combined earnings of rivals General Motors Co. and Volkswagen AG. Greatly boosting Toyota's earning is the yen.

Its depreciation against all major currencies in the past year has provided a lift to Japanese exporters and was able revive an economy that suffered three recessions in five years.  Toyota is now on track to become the largest carmaker in the world for the second year in a row.

Yusuke Miura, an analyst at Tokai Tokyo Securities Co., remarked that the weaker yen and cost-cutting efforts are the two major factors in Toyota's domestic profit surge. He remarked that the carmaker will likely remain good if the yen stays at the current level and cost-cutting efforts are executed continuously.

Toyota’s stocks have surged 58 percent this year, outpacing Honda Motor Co. and Nissan Motor Co. Thanks to Abenomics -- named after pioneer Prime Minister Shinzo Abe -- the yen has dropped about 12 percent against the dollar in 2013, trading at an average of 99 yen in the previous quarter, reflecting a 20 percent decline year-on-year.

Toyota expects to post JPY1.48 trillion in profits for the year ending March 31, 2014, based on a level of JPY92 to the dollar and JPY122 to the euro. The average estimate of 22 analyst estimates surveyed by Bloomberg, however, places the figure at a record JPY1.82 trillion.

Topics: toyota, record, income

If you liked the article, share on:


Login or Create new account to add a comment!


We’ve seen quite a lot of intriguing stories in the age of Internet (where the most interesting part was revealed before the story unfolds). Some are from movies and novels...
by - October 26, 2016
Many people have long known that the new 2018 RS5 was being developed by Audi AG. Enthusiasts the world over were excited when a prototype was seen running on the...
by - October 26, 2016
It was only recently when BMW officially debuted the new 2017 5-Series Saloon (G30) online. At that time, this range revealed that it had driving dynamics that was the best...
by - October 26, 2016
Starting early 2017, the new Audi Q7 will be available with the new 2.0-liter TFSI four-cylinder engine that makes it not only faster but also lighter and more efficient than...
by - October 25, 2016
Soon, Fiat Chrysler’s Dodge brand will be ending the production of the Dodge Viper. So practically, the 2017 Dodge Viper will be the last Viper up for grabs. Gerry Wood...
by - October 25, 2016