Despite the impact of a stronger yen, Toyota Motor Corp. had raised its full-year profit forecast as sales in Asia beat predictions. In a statement, Toyota said that for the 12 months ending March 31, net income may total 350 billion yen ($4.3 billion), compared with a previous estimate of 340 billion yen.
In the fiscal second quarter, net income increased to 98.7 billion yen from 21.8 billion yen a year ago.
Toyota has been working on its damaged reputation after the recall crisis that started last year. Despite its struggles, the carmaker posted a surge in profit in the three months ended Sept. 30 compared to the previous year.
Sales increased by about 90,000 vehicles in Japan, 62,000 in other Asian markets and 58,000 in growing markets including Latin America, Africa and the Middle East. On the other hand, sales decreased by 41,000 vehicles in Europe and 3,000 in North America in the second quarter.
Koji Endo, an auto analyst at Advanced Research Japan in Tokyo, said that Toyota's double-digit sales growth in Japan, China and Southeast Asia is “driving profit gains.”
As sales increase together with the recovering global economy, earnings forecasts are being boosted by Honda Motor Co. and Nissan Motor Co. with Toyota trailing them.
This allows Toyota to endure the yen's advance to near a 15-year high against the US dollar as well as the lingering effects of the massive vehicle recalls. [via autonews - sub. required]