Thomson ReutersA visitor walks between Toyota Motor Corp’s cars displayed at the company’s showroom in TokyoTOKYO (Reuters) – Toyota Motor Corp posted a 10 percent rise in first-quarter net profit on Tuesday, beating analyst estimates, as costs cuts and currency gains made up for weaker global vehicle sales.
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In April-June, Toyota’s global retail sales slipped 0.4 per cent to 2.502 million vehicles.
Shares in the carmaker closed down 1% in Tokyo ahead of the earnings release.
Meanwhile, in China, the world’s biggest auto market, Toyota has been posting strong sales in recent months.
The Corolla and Camry maker’s revenue for the first quarter in its fiscal year ending in March had jumped by 9.3 percent to 6.98 trillion yen year-on-year.
The yen has fallen 17 percent against the dollar over the past year. The automaker said last week that it sold 5.02 million vehicles in the six months through June, trailing the 5.04 million that Volkswagen reported. The company told workers in Japan in June that it would be “very difficult” to meet its annual sales target due to weak demand in emerging markets. Analysts project the company may earn about $26 billion in operating profit for this financial year, nearly double the $14.8 billion estimated for Volkswagen.
Sales growth in the US has been slower compared to its rivals as demand for passenger cars, which make up more than half of Toyota’s US sales, extends a decline on the back of rising purchases of SUVs and pickup trucks.
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In a separate statement, the company said it was re-organising its Chinese operations, including adding a new production line at one plant that would boost capacity at the site by 100 000 vehicles annually.
