Toyota Motor Corp. posted 27-percent surge in operating profit in the October-December fiscal quarter to JPY762.88 billion ($6.36 billion) as its strong performance in North America offset declines in other major markets. It also posted 14-percent jump in net profit in the fiscal quarter to JPY600.03 billion ($5.00 billion).
Global revenue still jumped 8.9 percent to JPY7.170 trillion ($59.78 billion) in the period despite a 2.3-percent decline in global vehicle sales to 2.263 million units. Toyota’s income surge in the quarter underscores its sensitivity to exchange rates, as a weakening yen against the dollar has made its earnings abroad much valuable when recorded in Japan.
Operating profit in the quarter was boosted by a JPY145 billion ($1.21 billion) windfall gain from the weakening yen. According to Managing Officer Takuo Sasaki, the yen’s faster-than-expected weakening was a key factor in raising Toyota’s profit forecast for the current fiscal year ending March 31.
He added that Toyota’s strong sales in the United States were also a factor in raising the forecast.
The carmaker is expecting a higher net income for the full fiscal year although its sales expectations were lowered (from 9.1 million to 9.0 million) as it continues to suffer from dropping demand in Japan, Asia and Europe. Sasaki also attributed the double-digit jump in net income to other factors like aggressive cost cutting.