Toyota reports record quarterly profit, boosted by a weak yen and despite a certification scandal
FILE - Toyota logo (Hybrid model) is seen at a new and used vehicles dealership in Palatine, Ill., Tuesday, March 20, 2024. Toyota reported Thursday, Aug. 1, that its April-June profit rose 1.7%, boosted by a favorable exchange rate, as vehicle sales grew around the world despite a certification scandal that halted production in Japan for several months. (AP Photo/Nam Y. Huh, File)
TOKYO (AP) — Toyota reported Thursday that its April-June profit rose 1.7%, boosted by a favorable exchange rate, as vehicle sales grew around the world despite a certification scandal that halted production in Japan for several months.
Fiscal first quarter profit at Japan’s top automaker rose to 1.33 trillion yen ($8.9 billion), a record profit for that period, from 1.31 trillion yen the same period a year ago.
Quarterly sales edged up 12% to 11.8 trillion yen ($79 billion).
A weak yen, which boosts the value of overseas profits for Japanese exporters, also helped. The U.S. dollar has been trading at above 160 yen in recent weeks, although it slid below 150 yen after the Bank of Japan raised a key interest rate.
The currency fluctuations added 370 billion yen ($2.5 billion) in operating profit for the period, according to Toyota Motor Corp.
Cost reduction efforts added 55 billion yen ($367 million) in operating profit.
Production in Japan was halted on some auto models after the government found irregularities in documentation for certification approval.
Toyota has apologized for the misconduct and said efforts were underway to resume production.
Demand for Toyota’s popular hybrid models remained especially strong. Hybrid models deliver fuel efficiency by switching back and forth between an electric motor and gas engine.
But Toyota sold fewer vehicles around the world during the latest quarter at 2.25 million vehicles, down from 2.3 million vehicles last year.
Toyota expects to sell 9.5 million vehicles around the world for the full fiscal year. When including group companies like Daihatsu Motor Co., which makes small models, and truck maker Hino Motors, annual global sales are expected to hit nearly 11 million vehicles, according to Toyota.
Toyota stuck to its profit forecast for the full fiscal year through March 2025 at 3.57 trillion yen ($24 billion), down nearly 28% from the previous fiscal year.
Last week, Japanese rival Nissan Motor Co. reported a 73% decline in quarterly profit, although sales edged up 3%. Honda Motor Co. reports earnings next week.
___
Yuri Kageyama is on X: https://twitter.com/yurikageyama