Toyota reported a nearly doubled quarterly profit Tuesday, driven by strong demand and favorable exchange rates. The automaker recorded 1.48 trillion yen in net profit during the April-June period. This Toyota profit surge marked significant improvement compared with the previous year’s quarterly earnings.
Furthermore, quarterly sales climbed 10 percent year-on-year, reaching 13.5 trillion yen during this same period. Notably, a weaker yen substantially boosted overseas earnings for Toyota and other major exporters. Consequently, favorable currency effects added roughly 345 billion yen to quarterly operating profit specifically.
However, the yen has since strengthened following a joint intervention between Japan and the United States. Therefore, Toyota now projects the currency at 160 to the dollar for the full year. Chief Officer Takanori Azuma noted global vehicle sales actually declined slightly during this quarter.
Nevertheless, Toyota expects stronger full-year sales, projecting 9.7 million vehicles compared with last year’s totals. According to Azuma, hybrid demand remains particularly strong across markets including the United States currently. Specifically, the Camry sedan and RAV4 SUV continue selling briskly within American markets.
Additionally, Toyota plans expanding hybrid and battery production capacity through 2030, aiming to reduce costs. Meanwhile, electric vehicle sales are also performing well across several international markets simultaneously. Popular models varied regionally, with Indian and Southeast Asian markets favoring different vehicle lineups.
Nevertheless, challenges persist, including Middle East instability affecting shipping routes through the Strait of Hormuz. Toyota confirmed it’s actively seeking alternative shipping routes to minimize supply chain disruptions. Additionally, a recent earthquake in Kumamoto temporarily halted production at several Japanese manufacturing facilities.
Consequently, Toyota’s Kyushu and Tahara plants both experienced production interruptions during this reporting period. Looking ahead, Toyota projects full-year profit reaching 3.25 trillion yen, below last year’s stronger results. Despite this forecast, annual sales should still improve to roughly 54 trillion yen. Following these announcements, Toyota shares declined nearly 2 percent during subsequent Tokyo trading sessions.
