Toyota posts record first-half profits

Source: Manufacturing Digital

Date :11/7/2007 4:07:06 AM

Japan's top automaker Toyota reported today an eleven percent jump in fiscal second quarter profit on the back of solid sales

Competition

The popularity of its eco-friendly hybrids, such as the Prius, and the brands reputation for fuel efficiency has been attributed to this success, which has prompted Toyota to raise its full-year sales target as it competes with General Motors to become the world’s biggest car maker.

The company’s July-September profit totaled 450.9 billion yen, up from 405.7 billion yen against the same period the previous year. Quarterly sales soared 11 percent to 6.490 trillion yen from 5.834 trillion yen.

“All territories outside Japan achieved sales growth, as our efforts to offer full-range of products in all territories, aimed at creating a well-balanced profit-generating structure, is now bearing fruit,” Toyota Motor senior managing director Takeshi Suzuki told a media conference on the results.

Credit crunch

“In addition, a weak yen and strenuous cost-cuts helped us to absorb rising procurement costs,” he continued.

“Although US demand for new vehicles has been dwindling due to higher crude oil prices and the subprime loan problem's impact on consumer confidence, our sales are more or less in line with the projected line.”

November 7, 2007