Toyota’s profit fell 7% in its first fiscal quarter as the strong yen and research costs offset higher sales, but Japan’s biggest automaker said the worst was over and raised its vehicle sales forecast for the full year, according to the Associated Press (AP).
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AP said Toyota Motor Corp. earned 266.8 billion yen ($US2.4 billion in the April-June quarter, down from 286.6 billion yen the previous year. Quarterly sales surged 10.5% to 4.98 trillion yen ($44.7 billion) from 4.5 trillion yen a year earlier.
The automaker reportedly said it expects results to improve toward the latter part of the fiscal year as new products roll out.
“The first half of this fiscal year represents the lowest point of the model cycle,” senior managing director Takeshi Suzuki said, according to the report. “We expect improvement from the latter half of this fiscal year [to the end of] next year.”
AP noted that Toyota’s car sales boomed around the world, rising in Japan, North America, Europe, Asia and even Africa and South America. Toyota sold 1.95 million vehicles worldwide, up 9% from 1.79 million.
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By GlobalDataThe Associated Press said Toyota, which does not give consolidated profit forecasts, raised its vehicle sales forecast for the fiscal year ending March 31, 2006, by 120,000 vehicles to 7.97 million vehicles. Earlier, the automaker had said it expected sales to rise to 7.85 million for this year.
AP noted that Toyota’s global sales last fiscal year rose to 7.4 million vehicles, up 10.3% from 6.7 million vehicles, with solid sales growth in North America, Europe, Japan and the rest of Asia.
For the fiscal year ended in March, Toyota posted a record profit of 1.17 trillion yen ($10.5 billion) on sales of 18.55 trillion yen ($166.5 billion), the Associated Press noted.
