Toyota lifts earnings forecasts for FY 2010 on sales rise, cost cuts+

TOKYO, Feb. 8 Kyodo -
Toyota Motor Corp. said Tuesday it has revised upward its group earnings
forecasts for the current business year to March on increasing sales in
emerging markets as well as cost-cutting efforts.
The nation's largest automaker said it now expects a group net profit of 490
billion yen, compared with an earlier projected profit of 350 billion yen and a
group operating profit of 550 billion yen, against an earlier forecast profit
of 380 billion yen.
''In addition to sales rises in Japan, other parts of Asia and Russia, our
efforts to improve profitability including cuts in material costs and fixed
costs are being achieved at higher levels than targets,'' Senior Managing
Director Takahiko Ijichi told a news conference.
Toyota, which has Daihatsu Motor Co. and Hino Motors Ltd. under its wing, now
projects sales of 19.2 trillion yen, up from an earlier forecast of 19.0
trillion yen, as it also lifted its worldwide sales volume projection to 7.48
million units, up from 7.41 million units projected in November.
In the April-December period, the automaker said its group net profit
quadrupled from a year earlier to 382.79 billion yen and operating profit
jumped eightfold to 422.19 billion yen on sales of 14.35 trillion yen, up 5.0
percent.
Toyota said its profitability improved in all areas and maintained high
profitability especially in fast-growing emerging markets including Asia, South
and Central America and Africa where sales of its vehicles are increasing.
''Such markets continue to grow steadily and will be the pillar of our
profitability in the future,'' Ijichi said.
In the three-month period to December, however, Toyota said its group net
profit dropped 38.9 percent from a year earlier to 93.6 billion yen and
operating profit fell 47.6 percent to 99.0 billion yen on sales of 4.67
trillion yen, down 11.7 percent.
The automaker attributed the falls to the adverse effects of a strong yen and
the termination of the Japanese government subsidy program for purchases of
environmentally friendly automobiles.
To stem the impact of the strong yen, Toyota implemented such measures as
raising vehicle prices in some areas and focusing on selling vehicles which
have high profitability and marketing cars produced locally, Ijichi said.
Regarding the effects of the automaker's massive global recalls from 2009 that
have hurt consumer confidence in Toyota vehicles, Ijichi said the company has
been reviewing every process from production to services to see why they have
occurred.
''Albeit gradually, we believe that we can regain customer confidence in our
vehicles,'' Ijichi said. ''Though we are only halfway there, we will steadily
make efforts this year.''
Later Tuesday, the U.S. Transportation Department plans to release the findings
of its investigations over the massive recalls.
==Kyodo
2011-02-08 23:36:38