Toyota Reports Stronger Than Expected Quarterly Sales

The Detroit Bureau - May 8, 2013

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.”

 

 

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