- Title: JAPAN: Toyota announces higher than expected profit forecast
- Date: 9th February 2011
- Summary: TOKYO, JAPAN (FEBRUARY 8, 2011) (REUTERS) **FLASH PHOTOGRAPHY** TOYOTA NEWS CONFERENCE TO ANNOUNCE QUARTERLY RESULTS PHOTOGRAPHER TAKING PICTURES (SOUNDBITE) (Japanese) TOYOTA SENIOR MANAGING DIRECTOR TAKAHIKO IJICHI SAYING "We have seen increases in the number of car orders from areas such as Japan, Asia and Russia. Additionally, our efforts in dealing with the Yen have paid off, and our efforts in reducing overhead have been more successful than our original goals. As such, we have revised up by 1.7 billion Yen our operating income to 5.5 billion yen." JOURNALIST TAKING NOTES (SOUNDBITE) (Japanese) TOYOTA SENIOR MANAGING DIRECTOR TAKAHIKO IJICHI SAYING "Thanks to efforts on our operations side, as well increasing our cost efficiency, by having additional investments that allow for even greater efficiency, as well as by reducing our write-off costs, we will make all efforts as a company to increase revenues. As a result of this, you're able to see that we have not only been able to overcome the rising Yen but also to post an increase in operating profits." TOYOTA NEWS CONFERENCE FINISHING
- Embargoed: 24th February 2011 12:00
- Keywords:
- Location: Japan, Japan
- Country: Japan
- Topics: Industry
- Reuters ID: LVA4AZPMETR1KPM6MMANRHSXWTQZ
- Story Text: Toyota Q3 profit halves but announces higher than expected full year profit forecast.
Toyota announced a 48 percent drop in quarterly profits in Tokyo on Tuesday (February 8), but the world's largest automaker raised its full-year outlook beyond market forecasts on stronger sales projections and cost cuts.
For the full year to March 31, Toyota raised its forecast for annual operating profit to 550 billion yen ($6.68 billion) from a cautious 380 billion yen, after profits for the first nine months exceeded that figure.
Toyota improved profitability by paring costs, helped by better than expected sales in Japan, the rest of Asia and Russia, senior managing director Takahiko Ijichi told a briefing.
"We have seen increases in the number of car orders from areas such as Japan, Asia and Russia. Additionally, our efforts in dealing with the Yen have paid off, and our efforts in reducing overhead have been more successful than our original goals. As such, we have revised up by 1.7 billion Yen our operating income to 5.5 billion yen," Ijichi said to gathered reporters.
Toyota exported more than half of its Japan-made vehicles last year, making a loss on many of them with the dollar well below the rate of 90, Toyota President Akio Toyoda has said is the minimum to keep Japan's manufacturing sector competitive.
Even so, Toyota said that efforts at increasing efficiency and reducing costs have helped it dilute the influence of the Yen's strength.
"Thanks to efforts on our operations side, as well increasing our cost efficiency, by having additional investments that allow for even greater efficiency, as well as by reducing our write-off costs, we will make all efforts as a company to increase revenues. As a result of this, you're able to see that we have not only been able to overcome the rising Yen but also to post an increase in operating profits," said Ijichi.
Japan's No.2 automaker Nissan Motor Co is also expected on Wednesday (February 9) to report a drop in third-quarter profits due to the stronger yen and falling demand in Japan and smaller rival Honda Motor Co has already posted weaker results for the period.
But the decline at Toyota is set to be the deepest given its heavier exposure to unprofitable exports from Japan.
Toyota, which stayed ahead of General Motors Co as the world's biggest automaker by a thinner margin last year, built 3.28 million vehicles in Japan last year, compared with 992,000 for Honda and 1.13 million for Nissan. - Copyright Holder: REUTERS
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