Toyota raised it profit outlook Wednesday after reporting a 70 percent jump in second quarter profits from last year.
“In addition to the impact of the weaker yen, operating income increased due to our efforts with our suppliers and distributors for profit improvement through cost reduction and marketing activities, such as enhancement of the model mix,” stated Nobuyori Kodaira, executive vice president.
Toyota Motor Corp., which relies on exports more than its competitors Honda Motor Company, Ltd. and Nissan Motor Co., Ltd., has been benefiting from a weak yen more than its rivals.
Nissan reported a 2 percent net profit increase last week and Honda reported a 46.4 percent increase helped by strong sales in the United States. Toyota also outsold rivals General Motors Co. and Volkswagen AG the first nine months of the year. Toyota plans to sell 9.1 million units for the full year.
It is also raised its profit forecast to $16.91 billion for the fiscal year, up from $15 billion.
A Thomson Reuters survey of 23 analysts has an average forecast of $18.1 billion, higher than the record $17.4 billion it earned in 2008.
Revenues also increased 14.9 percent in the second quarter compared to last year.
However, sales went down in Japan, Europe, and Asia, but operating income increased across these markets.
At an the earnings conference Wednesday, managing officer Takuo Sasaki acknowledged the need to spend as well.
“Our basic stance of controlling fixed costs and improving gross profit will not change, but we do need aggressive investment in order to brush up on future technology,” Sasaki said.
