Toyota recorded a record profit
As Tanjug reports, Toyota Motor Corporation posted quarter-on-quarter profit growth of 7.2 percent to a record 657.3 billion yen ($ 5.9 billion).
These results were due to better sales than expected on US and other foreign markets. Toyota’s profit in the same period last year amounted to 613.0 billion yen, according to AP.
The Sedri manufacturer, Prius hybrids and luxury Lexus models increased sales revenues by 4.5 per cent to record 7.4 trillion yen ($ 66 billion) in the observed quarter, representing the first quarter of the company’s business year. The results are better than expected, taking into account the latest developments in the US market and Japan where Toyota sales fell by almost 34,000 units.
Given the current uncertainties about the possible increase in US tariffs on imported cars, the company kept the profit projection for a full year at an unchanged level of 2.12 billion yen, but it reduced the sales forecast to 8.9 million vehicles from previously estimated 8, 95 million units.
Toyota had large investments in production facilities in the US, which should alleviate a potential blow from tariff increases. However, all major Japanese automakers will be affected if President Donald Tramp’s administration realizes threats and impose 25 percent duty on imports of cars and auto parts.
This time Toyota also announced business results before closing the stock market in Tokyo without waiting for the end of trading, which has been a standard practice for decades. The price of its shares dropped by 0.8% in Tokyo this morning.