Toyota Motor Corp. increased its net income for its fiscal third quarter ended Dec. 31 by around five times to JPY525.4 billion ($4.99 billion) from JPY99.9 billion ($949.4 million) in the same period in 2012, thanks to the weakening yen. The yen’s weak value against foreign currencies resulted to surge in earnings for Toyota as it raises the yen value of overseas earnings when repatriated to Japan, making Japanese exports more competitive internationally.
For the fiscal quarter, Toyota booked a foreign exchange gain of JPY260.0 billion ($2.47 billion) in the period. Toyota also logged a 24-percent surge in global revenue to JPY6.585 trillion ($62.58 billion) in the quarter, with vehicle sales hiking 10 percent to 2.317 million units.
The carmaker also logged huge gains in sales in North America and Japan, allowing it to defend its crown as world's largest carmaker in 2013 with a figure of 9.98 million vehicles. The figure has already topped pre-financial crisis sales levels. Analysts estimate that Toyota’s net profit in 2013 was as much as General Motors Co. and Volkswagen Group combined.
In announcing its fiscal third-quarter results, Toyota updated its earnings outlook to target record profits, underlining the carmaker’s full return from a series of rough years highlighted by its first operating loss in seven decades, a global unintentional acceleration recall crisis and the 2011 earthquake-tsunami disaster in Japan. In the current fiscal year ending March 31, 2014, Toyota is aiming for JPY1.9 trillion ($18.06 billion) in net income, from a previous forecast of JPY1.67 trillion ($15.87 billion).