Toyota quadruples April-December profit, ups forecast



Agence France Presse

Published — Tuesday 5 February 2013

Last update 6 February 2013 1:50 am

| نسخة PDF Print News | A A

TOKYO: Toyota said Tuesday net profit in the nine months to December quadrupled while it also lifted its full-year earnings outlook, reflecting the car giant’s recovery from Japan’s 2011 quake-tsunami.
The world’s number one automaker credited a sales boost in debt-struck Europe as well as the United States and Asia for the rise, and a weaker yen.
Toyota did not break out its latest figures for China, the world’s biggest vehicle market, where a diplomatic row between Tokyo and Beijing sparked a consumer boycott of Japanese goods.
But Senior Managing Officer Takahiko Ijichi said that September and October China sales tumbled by about half, although he added that: “By December, (sales) recovered to a 20 percent decline from a year earlier.”
Toyota previously said it expects to sell 200,000 fewer vehicles in China in the second half of its fiscal year to March and take a 30 billion yen ($325 million) hit to its bottom line. It sold 900,000 vehicles in China in 2011.
On Tuesday, Toyota said it earned 648.2 billion yen from April to December, up from 162.5 billion yen a year earlier, when automakers were pounded by the twin natural disasters, which devastated Japan’s northeast coast.
The automaker pointed to a weakening yen and cost-cutting for its improved results and upgraded forecast, with operating income soaring to 818.5 billion yen from 117.1 billion yen a year earlier.
The boost “reflects our increased vehicle sales and the progress we are making with our profit-improvement activities,” Ijichi said.
Sales in the period jumped 26 percent to 16.2 trillion yen, it said.
The firm also hiked its net profit forecast for the fiscal year through March to 860 billion yen from an earlier estimate of 780 billion yen, on projected revenue of 21.8 trillion yen.
Global vehicle sales in the year were on track to hit 8.85 million units, up from an earlier forecast of 8.75 million units, the automaker said, citing stronger demand in the North American market.
Toyota’s results for the three months to December saw net profit rise by nearly one-quarter although the figure fell short of some analysts’ expectations. Vehicle sales in Europe and Japan slipped in the quarter.
The results come after Japan’s three biggest automakers — Toyota, Nissan and Honda — last month posted record sales for 2012.
The figures confirmed Toyota had recaptured the title of the world’s biggest automaker from US giant General Motors which it lost in 2011.
Japanese firms struggled with a strong yen last year as it made their products less competitive overseas. The unit hit record highs around 75 to the dollar in late 2011, but it has been on a steep slide in recent months with the greenback buying 92.51 yen in Tokyo trade on Tuesday.
“On the back of the recent depreciation of the yen, Japanese automakers, including Toyota, will enjoy brisk results toward the end of the fiscal year and the early part of the next fiscal year,” said Shigeru Matsumura, auto analyst at SMBC Friend Securities.
But “the prospects for sales in China are still uncertain as they are linked to politics, rather than business.”
The long-standing row flared in September when Tokyo nationalized some of a tiny East China Sea archipelago that is also claimed by Beijing, setting off huge demonstrations across China and the consumer boycott.
Japanese factories and businesses across China temporarily closed or scaled back operations over fears of being targeted by angry mobs.
Last week, Honda said that its own nine-month net profit more than doubled although it trimmed its year to March forecast, citing the territorial spat.
Nissan — which has the most exposure to China among Japan’s top-three automakers — reports its results later this week.
Toyota shares slipped 1.19 percent to 4,540 yen in Tokyo. Its results were published after markets closed Tuesday.

What's happening around Saudi Arabia

UN Secretary General Ban Ki-moon and Saudi Arabia’s permanent representative to the UN Abdullah Al- Muallami unveiled a beautifully framed old kiswa (covering) of the door of the Holy Kaaba at one of the newly refurbished halls of the world body. The...
A policeman was shot dead by an unknown gunman in Qatif in the Eastern Province on Tuesday night.According to a spokesman of the Eastern Province police, the firing took place at 11:30 p.m. in a suburb called Al-Jishi.The targeted police officer was...
JEDDAH: Jeddah Show, one of the many events of Jeddah Summer Festival 36, is attracting a large number of visitors. The sound-and-light show is being run at the Jeddah International Exhibition and Convention Center.The show tells the story of the Bri...
JEDDAH: The Riyadh Traffic Department carried out extensive campaigns on the main streets, intersections and squares in the city to boost traffic safety levels and discourage bad driving.During the first 72 hours of the campaign, traffic personnel re...
RIYADH: One of two women infected with the Middle East Respiratory Syndrome coronavirus (MERS-CoV) died here in Riyadh, while the other patient is being treated at a hospital in Al-Kharj, some 60 km from the capital. Since June 2012, the Ministry of...
AL-AHSA: Approximately 20,000 tons of Al-Ahsa dates are planned to be marketed abroad during the new dates season.Muhammad Ismail, director general of the King Abdullah City for Dates (KACD), said: “The authorities in the city are planning to increas...
JEDDAH: Al-Bagdadiya neighborhood residents in Jeddah are living in a state of worry because of 20 abandoned houses, which serve as hideouts for criminals.Residents said some houses are on the verge of collapse and have turned into shelters for crimi...
JEDDAH: A committee consisting of representatives from the Hail governorate, municipality, health department and the Saudi Food and Drugs Administration (SFDA) has ordered the closure of a restaurant in the city’s industrial area.Twelve people suffer...
The board of the Saudia Standards, Metrology and Quality Organization has announced that mandatory application of the regulations on new tires produced or sold in the Kingdom will commence in November this year.The board explained that the technical...
JEDDAH: The number of people with mental health issues or depression is increasing in Saudi Arabia due to urbanization, marital or relationship problems, and not being able to keep up with rapid progress. A Saudi mother said that her daughter suffers...
JUBAIL: Jubail beaches are expected to receive many tourists during September as a large number of people usually head to the city once the summer gets cooler to enjoy their holiday here.As part of the beach preparations for this season, the Social S...
RIYADH: More than 50 percent of vehicle users in the Kingdom are not satisfied with the after-sales service of auto agencies in the Kingdom.In a survey conducted by the Ministry of Commerce and Industry (MCI) to evaluate the performance of automobile...
JEDDAH: The Appeals Court has upheld the verdict issued by a specialized penal court which sentenced Dr. Said bin Zair to four years in prison from the date of his arrest in 1428.According to the ruling, the academician is also banned from traveling...
JEDDAH: Health authorities in the Eastern Province are expected to issue a decision soon against four Saudi nurses accused of “negligence” for an incident which led to the amputation of the hand of a Saudi girl after they tried to insert a needle in...
JEDDAH: The Jeddah municipality has closed down a popular restaurant following the discovery of a rat rummaging through food items.The rat act was captured on video and posted on social media websites. It went viral, prompting the authorities to laun...

Stay Connected

Facebook