Wednesday, November 26th0.3°C
23286
24058

Toyota's profit up nearly 5 per cent on sales growth, forecasts fewer vehicle sales for year

TOKYO - Toyota Motor Corp. reported a 5 per cent jump in quarterly profit Tuesday, outpacing expectations as vehicle sales grew in North America and Europe, offsetting a drop in Japan.

The Japanese maker of the Prius hybrid, Camry sedan and Lexus luxury model said April-June profit totalled a record 587.77 billion yen ($5.7 billion). Quarterly sales rose 2 per cent to 6.39 trillion yen ($62.3 billion).

Both were better than projections by analysts surveyed by FactSet, who had expected a 1 per cent increase in quarterly sales and a 12 per cent drop in profit compared with a year earlier.

Toyota Managing Officer Takuo Sasaki credited cost reduction efforts and a weak yen, which helps Japanese exporters such as Toyota, for the positive results.

But Toyota lowered its vehicle sales forecast for 2014, saying it now expects to sell 110,000 fewer vehicles worldwide than the plan announced in January. Even then, it will still reach the 10 million vehicle industry milestone at 10.22 million vehicles, up 2 per cent from 2013.

For the first half of the year, Toyota remained the world's top-selling automaker, although Volkswagen AG of Germany beat U.S. manufacturer General Motors Co. to become No. 2 in global vehicle sales.

Toyota's results outshone General Motors, which last month reported a $190 million profit for the April-June quarter after incurring $1.5 billion in recall expenses. The U.S. automaker is grappling with the cost of repairing nearly 30 million cars and setting aside compensation for crash victims.

For the latest quarter, Toyota's vehicle sales dipped in Japan, where sales got artificially inflated ahead of an April 1 tax hike as buyers sought to avoid the higher tax.

Vehicles sales also dropped in the rest of Asia, but it gained in North America, Europe, the Middle East, South America and Africa.

Demand was strong in the key U.S. market for the RAV4 sport-utility vehicle and the Corolla subcompact. The Corolla was also a hit in Europe, according to Toyota.

Despite the relatively pessimistic projections, Scott Kuensell, portfolio manager at U.S. investment company Brandywine Global, was excited about Toyota, calling its stock "ridiculously cheap."

Kuensell said Toyota has plenty of cash and boasts a green reputation with a stake in electric carmaker Tesla Motors.

Toyota shares finished flat on the Tokyo Stock Exchange at 6,042 yen ($59), shortly before earnings were announced.

Toyota stuck to its financial forecasts for the fiscal year through March 2015 at a profit of 1.78 trillion yen ($17.4 billion), down 2 per cent year-on-year, on 25.7 trillion yen ($251 billion) sales, unchanged from the previous year.

The weak yen was a perk for other Japanese automakers as well, including Honda Motor Co. and Nissan Motor Co., which have both reported solid results.

___

Follow Yuri Kageyama on Twitter at https://twitter.com/yurikageyama

The Canadian Press


Read more Business News

22899


Recent Trending




Today's Market
S&P TSX15073.65+58.24
S&P CDNX780.64-6.86
DJIA17814.94-2.96
Nasdaq4758.252+3.36
S&P 5002067.03-2.38
CDN Dollar0.8862-0.0022
Gold1194.90-2.20
Oil74.30+0.21
Lumber328.80-0.70
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.32+0.04
Cantex0.040.00
Anavex Life Sciences0.175-0.005
Metalex Ventures0.030.00
Russel Metals32.14+0.65
Copper Mountain Mining2.15-0.02
Colorado Resources0.130.00
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.325-0.04

 
23744




FEATURED Property
1882641#110 -- 5080 Snowbird Way
3 bedrooms 2 baths
$399,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...

_



24207

24231


Member of BC Press Council


23646