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:

Comments

Recommended

Like it or not, Chevrolet may soon be offering a cheaper Camaro in hopes of competing with Dodge Challenger and Ford Mustang GT. Apart from the less expensive trim, the...
by - August 17, 2017
Recently, Porsche revealed a new Macan Turbo wearing a Performance Package and a unique Porsche Motorsport themed paint. At first look, it will remind you of the 919 Hybrid and...
by - August 17, 2017
The BMW M1 will be one of the most exclusive cars that will be showcased at the upcoming 2017 Pebble Beach Concours d'Elegance, alongside many other extravagant models. Firstly, there...
by - August 17, 2017
Aston Martin Vanquish Zagato makes its debut with a total of four variations including the Speedster and the Shooting Brake trims. As part of the limited edition model, the company...
by - August 17, 2017
Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 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