Japanese carmaker Toyota has logged a marked rise in first-quarter profits despite slightly lower unit sales in the new fiscal year. Production cost reductions helped the company secure solid results despite recalls.
Toyota Motor Corporation said Tuesday its net income for the three months to June increased by 10 percent to 587.7 billion yen ($5.2 billion, 4.8 billion euros).
The Corolla and Camry maker’s revenue for the first quarter in its fiscal year ending in March had jumped by 9.3 percent to 6.98 trillion yen year-on-year.
Vehicle sales in the three months under review totaled 2,114,000 units, marking a decrease of more than 127,000 cars compared with the same period a year earlier.
Sales to pick up
“Favorable foreign exchange rates and cost reduction efforts were main positive factors,” Toyota Managing Officer Tetsuya Otake said in a statement.
“But increased expenses to support initiatives for enhancing competitiveness were among the negative factors,” Otake added.
The Japanese carmaker provided a positive outlook for the remaining three quarters, raising its vehicle sales forecast from 8.9 million units to 8.95 million cars globally “in consideration of the latest sales trends worldwide.”
hg/cjc (AFP, Reuters)