Toyota's Profit Rises Despite Production Halt
Toyota's profit for the April-June quarter rose 1.7%, reaching a record 1.33 trillion yen ($8.9 billion). This increase was driven by a favorable exchange rate and strong vehicle sales around the world, despite a production halt in Japan due to a certification scandal.
The weak yen boosted the value of overseas profits for Toyota, adding 370 billion yen ($2.5 billion) in operating profit. However, production in Japan was halted for some models after the government discovered irregularities in certification documentation. Toyota has apologized for the misconduct and is working to resume production.
Despite the production halt, demand for Toyota's popular hybrid models remained strong. These models, which switch between an electric motor and gas engine, offer improved fuel efficiency. However, Toyota sold fewer vehicles overall during the quarter, with global sales dropping from 2.3 million to 2.25 million.
Toyota expects to sell 9.5 million vehicles worldwide for the full fiscal year. Including group companies like Daihatsu and Hino Motors, annual global sales are expected to reach nearly 11 million vehicles.
Toyota maintained its profit forecast for the full fiscal year at 3.57 trillion yen ($24 billion), a decrease of nearly 28% from the previous year. Last week, rival Nissan reported a 73% decline in quarterly profit, while Honda is expected to report earnings next week.