Toyota Enjoys Record April-June Earnings on Robust Overseas Sales

Tokyo, Aug. 3 (Jiji Press)–Toyota Motor Corp. said Friday that brisk overseas sales and a weak yen boosted its April-June group earnings to record highs for any three-month period.

Net profit for the fiscal first quarter grew 32.3 pct from a year before to 491,541 million yen. Operating profit increased 31.8 pct to 675,427 million yen, on sales of 6,522,637 million yen, up 15.7 pct.

The effects of upbeat overseas sales were amplified by the yen’s weakening against the dollar and the euro, with foreign exchange gains contributing 100 billion yen to Toyota’s quarterly operating profit.

“As well as robust overseas sales, cost-cutting efforts, which absorbed the impact of rising materials prices, contributed to Toyota’s first-quarter earnings,” Senior Managing Director Takeshi Suzuki told a press conference.

Toyota’s global auto sales, including those of subsidiaries Daihatsu Motor Co. and Hino Motors Ltd. , totaled 2,365,000 units, up 7.1 pct.

Sales in North America, the largest market, increased 2.0 pct to 762,000 units, boosted by robust sales of the Tundra full-size pickup truck, the Lexus LS and the Prius hybrid. Operating profit increased 14.3 pct to 160.2 billion yen.

“Robust sales of the Tundra were the biggest contributor to the increase in North American earnings,” Suzuki said.

In July, Toyota sold 23,000 Tundras, rewriting the monthly sales record for the third consecutive month, according to Suzuki. “Toyota will be able to achieve its target of selling 200,000 Tundras in North America this year,” he said.

Sales in Europe increased 8.1 pct to 333,000 units, and operating profit grew 5.5 pct to 38.5 billion yen, on brisk sales of the Auris compact hatchback, the Aygo compact car and the Yaris compact car.

Sales in Asia, excluding Japan, increased 15.0 pct to 222,000 units, and operating profit rose 65.3 pct to 49.6 billion yen, thanks mainly to higher sales in Indonesia and China.

But sales in Japan fell 7.9 pct to 500,000 units, reflecting stagnant demand across the industry. But operating profit grew 33.4 pct to 396.6 billion yen, boosted mainly to an increase in exports.

“Conditions in the domestic market remain severe,” Suzuki said. “But Toyota’s profitability in Japan is improving on brisk sales of the Lexus LS hybrid launched in May,” he said.

Despite the robust first-quarter earnings, Toyota kept intact its earnings and vehicle output forecasts for the full year to March 2008 that it announced in May.

Toyota expects to report a net profit of 1.65 trillion yen, up 0.4 pct from the previous year, and an operating profit of 2.25 trillion yen, up 0.5 pct. Sales are projected at 25 trillion yen, up 4.4 pct.

Annual global vehicle sales are targeted at 8.89 million units, up 4.3 pct.

In July, Toyota was compelled to briefly halt production after a key auto parts supplier stopped operating a plant in Niigata Prefecture, northwestern Japan, after it was hit by a powerful earthquake.

The production suspension resulted in an output loss of 60,000 vehicles, Suzuki said. “But as Toyota will make up for the shortfall by operating plants on weekends between September and November, the production halt will not affect Toyota’s full-year vehicle output and earnings,” he said.[EARNINGS]END

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