Second-quarter net profit at Toyota seen to hit JPY441.2 billion

Article by Anita Panait, on August 7, 2013

Toyota Motor Corp. is expected to report a 52-percent surge in net profit in the quarter ended June 30, 2013, to JPY441.2 billion ($4.5 billion), according to the average of four analyst estimates compiled by Bloomberg. The profit surge at Toyota comes even after Detroit 3 continues to eat the Japanese carmaker’s market share in the United States.

It is mainly attributable to the effects of depreciated yen that allows Japanese companies to boost the value of their exported products. The yen has been depreciating since Shinzo Abe was installed as Japan’s Prime Minister in late 2012. The carmaker – which had struggled through a recall crisis, natural disasters and strong yen -- is expecting to post its highest annual profit in six years for the year ending March 31, 2014.

Edwin Merner, president of Atlantis Investment Research Corp. told Bloomberg that Toyota is “doing the right things” in not trying to increase its market share, but in trying to hike its profit margins.

He said that if Toyota’s volumes fell sharply to around 20 to 30 percent, he would “worry." Toyota shares so far have outperformed stocks of all major carmakers as it soared 55 percent in 2013, bring its market value up by over $77 billion.

Toyota’s stock is trading at around 10 times projected profits for next year, the highest multiple among the five biggest carmakers in the world. The carmaker’s posted a net profit margin of 4.4 percent in the fiscal year ended March 31, 2013, compared to just 1.5 percent in the a year ended March 31, 2012.

Topics: toyota, profit

If you liked the article, share on:

Comments

Recommended

The Nurburgring is the one track that many automakers want to hold a record of, because only the best of the best do. This time, a group of extraordinary passionate...
by - July 25, 2017
Would you like your convertible to be inspired by a yacht? Well, you do not have to imagine it anymore - thanks to the Bentley Continental GT Convertible and Mulliner...
by - July 25, 2017
The 2018 Jaguar E-Pace is the leaping cat’s first venture into the compact SUV segment, and sure enough, it didn’t take long before an artist rendered a wilder version of...
by - July 25, 2017
Good news for Audi EU5 and EU6 diesel car owners in Europe. They can now update their cars to fit six-cylinder or eight-cylinder TDI engines through a retrofit program, and...
by - July 25, 2017
Recently, Autocar revealed that a Ferrari SUV is on the way, after the company continuously denied that they will not build one. And unlike the usual crossover styling, Ferrari will...
by - July 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries