Toyota reports record third quarter profit of $3.55 billion

06 February 2007

Mumbai: Toyota Motor Corporation, the world's second-largest carmaker, posted record net profit of ¥426.8 billion ($3.55 billion), or ¥133.13 a share, for the three months ended December 31, 2006, compared with ¥397.6 billion yen (¥122.17 per share), a year earlier.

Its third quarter net income rose 7.3 per cent helped by a weaker yen and increased sales of Camry sedans and Corolla compact cars, the Toyota City, Japan-based carmaker said.

Vehicle sales rose nine per cent to 2.16 million units in the three-month period, led by a 19 per cent increase in North America and a 24 per cent rise in Europe. Sales in Japan fell 5.3 per cent and in Asia excluding Japan dropped 6 per cent while sales in Central and South America rose 34 per cent. Total sales rose 15 per cent to ¥6.15 trillion.

Operating profit surged 19 per cent to ¥574.8 billion. Toyota also confirmed its full-year profit of ¥1.55 trillion yen, saying it nay exceed expectations. Full year vehicle sales are forecast unchanged at 8.47 million units worldwide.

Toyota said it aims to trim costs by 30 billion yen and boost vehicle sales in the current quarter in an effort to surpass its full-year profit goal. The increase in earnings contrasts with rival Nissan Motor Co, Japan's third-largest carmaker which reported a 23 per cent drop in third quarter net income at ¥104.4 billion on a drop in vehicle sales.

Toyota, with fuel-efficient vehicles in North America, its most profitable market, has lured customers from General Motors Corporation and Ford Motor Company and is all set to overtake GM as the largest automaker as early as this year.