Toyota’s Profit Soars,
Helped by U.S. Sales

MARTIN FACKLER / New York Times 5aug2006

TOKYO, Aug. 4 — The Toyota Motor Company said on Friday that its net income increased 39 percent, to $3.23 billion, in the fiscal first quarter, aided by strong sales of its fuel-efficient vehicles in the United States.

Toyota, the second-largest automaker in the world, appeared on pace to pass General Motors as the world’s largest, perhaps as soon as this year. Toyota passed the Ford Motor Company in July sales to rank as the second-biggest automaker in the United States.

Toyota, which earned $2.3 billion in the quarter a year ago, said its revenue rose 13 percent in the quarter, while its vehicle sales rose nearly 8 percent worldwide, to just over two million.

For the year, Toyota said it still expected to meet its profit forecast of about $11.3 billion, and its sales forecast of $194 billion.

Sales in the quarter were led by the Corolla, the best-selling small car in the United States; the RAV4, a small sport utility vehicle; and the FJ Cruiser, an S.U.V. aimed at younger buyers. Toyota said its results were also bolstered by the strong yen.

The results came as Toyota has hastened efforts to deal with a spate of recalls, both in the United States and worldwide, that have drawn an investigation by the Japanese government.

Toyota’s robust showing is a sharp contrast to the struggles at G.M. and Ford, which are restructuring in efforts to reverse losses in their North American operations.

This week, both G.M. and Ford said their second-quarter losses were deeper than they originally disclosed, because of revisions in their cost estimates.

Toyota’s strong results came on top of Honda’s $1.2 billion profit in the first quarter, up 30 percent from 2005.

Many analysts believe Toyota will pass G.M. this year as the world’s biggest auto company, given an aggressive expansion plan that comes as G.M. is losing market share in the United States. Toyota is scouting sights for another assembly plant and a new engine plant, and will open a truck factory in San Antonio this fall.

On Friday, Toyota said it was on track to meet its forecast of selling 8.45 million vehicles in its current fiscal year, which ends March 31.

G.M. has not released a sales forecast, but it sold just over 9.1 million vehicles last year.

Toyota said it earned an operating profit of $2 billion in North America, where its sales rose 16.5 percent in the quarter. Sales were helped by the introduction of its subcompact, the Yaris, which it has sold overseas for several years. It also introduced a redesigned version of the Camry sedan, the most popular family car in the United States.

Meanwhile, sales in Europe rose 20.3 percent, and Toyota earned an operating profit of $319 million there. In Europe, as in the United States, the Yaris and RAV4 are among its strongest-selling vehicles.

Micheline Maynard contributed reporting from Detroit for this article.

source: http://www.nytimes.com/2006/08/05/business/worldbusiness/05toyota.html?_r=1&oref=slogin&pagewanted=print 5aug2006

Automaker's profit increases by 39%

AP 5aug2006

TOKYO — Toyota Motor Corp. on Friday reported a 39 percent jump in first-quarter profit.

Toyota said it earned $3.2 billion, up from $2.3 billion in the year-ago period, as a weaker yen helped earnings, adding $871 million to operating profit. Sales surged 13 percent, to $49 billion.

Toyota's reputation for fuel-efficient cars is proving to be a boon at a time when drivers are balking at soaring gas prices, analysts said. Toyota is among a clutch of Japanese vehicle companies reporting robust results lately in contrast to the plight of the U.S. automakers.

"Everything is going well for Toyota, especially in North American sales," said Koji Endo, auto analyst at Credit Suisse First Boston Securities in Tokyo.

The company's light trucks and Lexus luxury models, which tend to produce healthier profit margins than smaller vehicles, have also been doing well.

source: http://www.chicagotribune.com/business/chi-0608050134aug05,1,3475391.story?coll=chi-business-hed 5aug2006

Toyota reports 39% quarterly profit jump

MU XUEQUAN / Xinhuanet (China) 5aug2006

BEIJING — Toyota Corp., the world's second biggest automaker reported a 39 percent jump in profit in the first fiscal quarter Friday, according to the report of Los Angeles Times Saturday.

Toyota's profit in April-June totaled $3.2 billion, up dramatically 39.2 percent from the same period the previous year, as a weaker yen also helped earnings.

Some analysts believe Toyota will overtake GM as the world's No. 1 automaker in a few years if the current pace continues.

Toyota sold 2.09 million vehicles around the world in the latest quarter, up from 1.95 million the same period a year earlier. General Motors sold 2.4 million vehicles globally in the same quarter.

But Toyota has faced its own troubles, including increasing numbers of recalls partially due to its efforts to cut costs by using the same parts across different models.

source: http://news.xinhuanet.com/english/2006-08/05/content_4923443.htm 5aug2006