Toyota Motor Corp. records a better-than-expected quarter, with its fiscal year ended March 31, as record sales and weakened yen are factored in.
Get the full report on Toyota’s sales figures.
A combination of increased global auto sales and favorable exchange rates allowed Toyota Motor Corp. to report a $3.2 billion profit this quarter: double the result from the year-ago period.
Additionally, the Japanese automaker projected a $13.8 billion profit for its fiscal year, which ended in March. That result was perhaps the most impressive as it exceeded analysts’ estimates of $9.2 billion in earnings and its own initial forecast of $8.7 billion in annual profit. The company expects the strong results to continue for its new fiscal year.
While the weak yen yielded a better return on export sales, Toyota officials were quick to point out that played a secondary role in the company’s impressive result. The biggest driver was increased sales in each one of its global markets last year. The company recaptured the world’s top-selling automaker last year.
Toyota said improved sales accounted for $6.6 billion, then $4.5 billion to cost cutting measures and $1.5 billion to the weaker yen. Toyota sold 8.87 million vehicles around the world in its last business year, up nearly 21 percent from 7.35 million vehicles the previous year. It expects that number to rise to 9.1 million this year.
The company’s results are all the more impressive, in particular in North America, considering the quality issues it has run up against in recent months. Toyota’s been subject to several recalls due to airbag and other issues.
“Toyota has recovered much of the market share lost due to the recalls and natural disaster,” said Alec Gutierrez, senior analyst at Kelley Blue Book. “Although Toyota has seen solid growth in market share and sales since 2012, sales declined in April.”