Toyota Motor Corporation said it boosted first (fiscal) half operating and net profits on sales up 14.9% to JPY12.53 trillion though unit volume was down 48,000.
Operating income increased from JPY693.7bn yen to JPY1.25 trillion while income before income taxes was JPY1.34 trillion. Net income increased from JPY548.2bn to JPY1 trillion yen.
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Major factors contributing to the operating profit rise included currency fluctuations of JPY540bn, cost cuts of JPY140bn and marketing activities of JPY40bn.
Vehicle unit sales fell 48,425 to 4,467,761.
TMC executive vice president Nobuyori Kodaira said: “In addition to the impact of the weaker yen, operating income increased due to our efforts with our suppliers and distributors for profit improvement through cost reduction and marketing activities, such as enhancement of the model mix.”
In Japan, vehicle sales dipped 90,724 units to 1,101,206. Operating income increased JPY579.1bn to JPY830bn.
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By GlobalDataIn North America, vehicle sales rose 37,316 units to 1,298,044. Operating income fell JPY20.3bn to JPY162.3bn, including a loss of JPY23.2bn yen from interest rate swaps.
In Europe, vehicle sales fell 5,232 to 406,934 units but operating income rose JPY13.3bn to JPY25.4bn.
In Asia, vehicle sales fell 60,279 to 779,586 units but operating income increased JPY1.1bn to JPY195.6bn.
In other regions (including Central and South America, Oceania, Africa and the Middle East), vehicle sales rose 70,494 to 881,991 units and operating income was up JPY17.4bn to JPY76.1bn.
In the financial services segment, operating income decreased by JPY41.2bn to JPY133.2bn yen, including a loss of JPY29.2bn from interest rate swaps.
TMC has maintained the estimate it announced in August this year that its consolidated vehicles sales for the fiscal year ending 31 March, 2014 will be 9.1m units.
It forecast consolidated sales of JPY25 trillion, operating income of JPY2.20 trillion and net income of JPY1.67 trillion.
Kodaira said: “To achieve sustainable growth, we will continue to focus on strengthening our profit structure through continued gross profit improvement per vehicle and control of fixed costs.”
Karl Brauer, senior analyst for Kelley Blue Book, said: “While all the key numbers for Toyota are moving in the right direction, the automaker has yet to achieve its pre-recession sales or market share.
“Over the past five years Toyota has weathered an economic downturn, negative headlines related to unintended acceleration, a powerful tsunami that damaged the company’s production capacity and anti-Japanese sentiment in the Chinese market.
“And while these hurdles have been largely overcome, an even greater challenge remains for Japan’s largest automaker: increased competition. A resurgent USauto industry, along with improved products from Europe and Korea, have narrowed or even eliminated the quality and fuel-efficiency advantage Toyota once held.
“The Scion brand continues to struggle, as does Toyota’s effort to sell a profitable full size truck to US buyers as the truck market recovers. This increased global competition means increased pressure on Toyota to introduce new and better products while controlling costs and maintaining profitability.”
