Incentives and the yen are to blame.
Due to the weak value of the yen, Toyota is on track to have four times the per-vehicle profit of its US competitors, The Detroit News reports. Some allege currency manipulation gives the automaker an edge.
Toyota is making more money than ever and is potentially on track to have the most profitable fiscal year in the company's history. Much of that success is due to the weak yen compared to other currencies.
Depending on how you want to look at things, the US Attorney's Office $1.2-billion dollar settlement with Toyota in March over its unintended acceleration recall was either a big blow to the company or completely inconsequential. From January to March, net income fell five percent to 297 billion yen ($2.89 billion), compared to 313.9 billion yen ($3.05 billion) a year ago. However, the automaker still posted record full-year profits worldwide.
Toyota isn't just the world's largest automaker – so far its the biggest winner for quarterly profits. With an enormous $5.5 billion take during Q2, Toyota took advantage of the weak Japanese yen and strong US demand to record a 94-percent improvement in profit over the same period from last year. So far, Toyota brought in larger profits than Ford and General Motors combined.
Toyota earned $9.3 billion in net income in the financial year that ends next month. The number beats earlier forecasts and marks a five-year high for the automaker, with both operating income and revenue up by 9.5 percent and 2.5 percent, respectively. Toyota saw quarterly profit enjoy a year-on-year jump of 23.4 percent, with the manufacturer earning more than $1 billion between October and December 2012. The good news comes in spite of the fact that the Japanese automaker actually endured an
Automotive News reports Toyota saw a sizable jump in third-quarter North American sales and has adjusted its global forecast accordingly. All told, the Japanese automaker sold 598,000 units in North America during the last quarter, marking an increase of 45 percent over the same time period last year. As a result, operating profit in the region also increased to $807.1 million, though Toyota also credits much of that figure to additional output. The company stepped up North American production b
Things are good again at Toyota, which reported a $1.5 billion profit for the quarter, wrapping up a fiscal year in which it made just $3.5 billion, according to Business Week.
2011 has been a trying year for Toyota, as the earthquake and tsunami in Japan and the flooding in Thailand have conspired to slow vehicle production and cut into profits. Toyota lowered its profit forecast after the Japan disaster, and now Automotive News reports that the automaker is once again cutting expected profits by a significant margin.
Toyota saw another unfortunate month of sales in September. The automaker saw its sales figures fall by 18 percent compared to the same time last year, thanks largely to lower-than-average dealer inventory brought on by this year's earthquake and tsunami disasters. Toyota sold 121,451 vehicles in the U.S. last month across its three brands. The company moved 147,162 vehicles during the month of September last year.
Toyota has announced profits of $314 million for the first three months of 2011, down 77 percent versus the automaker's fiscal fourth quarter a year earlier. Toyota still managed a profit in spite of the March 11 earthquake that shuttered most Japanese plants, yet the $314 million is only a fourth of what analysts were expecting Toyota to make. Toyota's sales were predictably low for the quarter, and revenue was hurt as a result.
Despite internal predictions that its current throttle-related recall costs may dent company coffers by up to $2 billion this quarter, Toyota has raised its projections for the fiscal year ending in March. That's according to Reuters, who note that the increase comes after the automaker beat its third quarter estimates.
Whenever we talk about GM's performance in the global market, people invariably want to hear about how well Toyota is doing in the same arena. The Japanese automaker has been nipping at the General's heels in terms of the number of units each automaker has sold globally so far this year. Earlier in the year, Toyota actually surpassed GM in global sales, but the American auto giant has since regained the lead in year-to-date global sales and keeps it through Q3.