Toyota doubles profits


Toyota said Tuesday it is on track for a record annual profit as it announced its nine-month net earnings more than doubled to $15 billion on a sharp drop in the yen and surging overseas sales.

The world’s biggest automaker earned 1.52 trillion yen ($15 billion) between April and December on sales of 19.12 trillion yen — propelled by a five-fold jump in third-quarter earnings.

It also boosted a fiscal year to March profit forecast to a record 1.90 trillion yen.

Japanese automakers have been big winners over the past year as a sharp drop in the yen inflated exporters’ repatriated profits, further boosted by improved overseas demand.

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Toyota has ramped up its bid to tap emerging markets while key US demand has also been on the upswing, helping the firm book ever-increasing profits.

“In addition to the positive impact of the weaker yen, our operating income increased due to marketing efforts such as increased vehicle sales and cost reduction activities through collaboration with our suppliers,” Toyota managing officer Takuo Sasaki said in a statement.

Profits double
Profits double

Last month, Toyota kept the title of world’s biggest automaker with calendar-year 2013 sales of 9.98 million vehicles, outpacing Germany’s Volkswagen and General Motors, and said it expects this year to become the first automaker to break the 10 million vehicle sales barrier.

Toyota broke GM’s decades-long reign as world’s top automaker in 2008 but lost the crown three years later as Japan’s quake-tsunami disaster hammered production and disrupted the supply chains of Japanese automakers.