Toyota returns to black in April-Sept., lifts profit outlook+

TOKYO, Nov. 5 Kyodo -
Toyota Motor Corp. reported a group net profit Friday of 289.16 billion yen for
the April-September period against a year-earlier loss of 55.99 billion yen,
raising its full-year profit forecast also, as robust global sales more than
offset the impact of the strong yen.
For the whole of fiscal 2010 through next March, Japan's largest automaker said
it now expects to see a group net profit of 350 billion yen, up from an
earlier-projected profit of 340 billion yen, on sales of 19 trillion yen, down
from the 19.5 trillion yen forecast it revealed in August.
In the first six months of the current business year, the automaker posted a
group operating profit of 323.12 billion yen against a year-earlier loss of
136.86 billion yen, on sales of 9.68 trillion yen, up 15.5 percent.
The company also raised its operating profit estimate to 380 billion yen from
an earlier-projected 330 billion yen, as it expects to absorb the adverse
effects of a strong yen through cost-cutting efforts, according to Executive
Vice President Satoshi Ozawa.
The automaker, which has been struggling to regain consumer confidence
following its massive global vehicle recalls from last year, said it is still
affected by the incident directly and indirectly.
''But this fiscal first half became the six months that we were able to take
calm responses,'' Ozawa told a news conference.
The automaker saw solid sales in the April-September period, selling 3.72
million units globally, thanks to continued growth in emerging markets and
sharp demand in Japan prior to the expiry in September of a government subsidy
program.
Domestic sales in the latest reporting period grew 18.4 percent from the
year-before level to 5.73 trillion yen, while sales jumped 50.3 percent to 1.63
trillion yen in Asia and gained 8.7 percent to 2.82 trillion yen in North
America. Toyota reported a 14.3 percent sales decline, to 925.1 billion yen, in
Europe.
Reflecting the solid performance, Toyota, which has Daihatsu Motor Co. and Hino
Motors Ltd. under its wing, raised its full-year global sales volume projection
to 7.41 million units from the earlier-forecast of 7.38 million units.
Despite the growth in the overall sales volume estimate, Toyota revised its
sales volume outlook in the United States for the full year downward due to the
slow economic recovery. It also cut its sales volume projection in Europe after
government incentives ended, it said.
Looking ahead, the automaker is expecting such adverse factors as a strong yen
as well as the termination of the government subsidy program for purchasers of
environmentally friendly automobiles.
''It's very painful to think about what to do with domestic production'' when
the yen continues to remain firm against the U.S. dollar, Ozawa said. ''But we
have a mission to maintain (annual) domestic production of 3 million units in
order to protect Japan's economy and employment,'' he added.
Toyota revised its foreign exchange assumption to 82 yen to the dollar for the
second half of fiscal 2010 from 90 yen. A strong yen hurts Japanese exporters'
overseas profits when repatriated.
To cope with the termination of the government subsidy program, the automaker
said it will promote tax breaks for eco-friendly vehicles and sales promotion
campaigns with the launch of specially customized vehicles.
Toyota's favorable earnings followed similar results from rivals Honda Motor
Co. and Nissan Motor Co.
Meanwhile, Toyota said its production has not been affected so far by the de
facto embargo on rare earth exports by China, but is collecting information in
order to prepare for any eventuality.
==Kyodo
2010-11-05 22:40:32