US-Europe Sales Drive Toyota Profits

10 May 2007

TOKYO: Despite less robust domestic sales, Japanese automaking titan Toyota has revealed an 8.9% increase in net profit on the back of stronger North American and European demand during the first calendar quarter.

Group net profit climbed to ¥440.1 billion ($3.6bn: €2.7bn; £1.8bn), compared with ¥404.1bn in the year earlier period. Group sales rose 10% to ¥6.33 trillion from ¥5.751tr.

For the full fiscal year, Toyota reported net profit of ¥1.644tr, up from ¥1.372tr, while operating profit for the year rose to ¥2.239tr from ¥1.878tr. Group sales rose 14% to ¥23.948tr.

US rivals could only wring their hands in envy at Toyota’s runaway numbers. General Motors, which recently ceded its global production and sales top spot to the Japanese firm, reported a 90% drop in Q1 profit, while Ford posted a net loss.

Toyota also outperformed its local rivals, with both Nissan Motor and Honda Motor reporting weaker profits for the January-March quarter.

Data sourced from Wall Street Journal Online; additional content by WARC staff