Operating income increased from a loss of 136.9 billion yen (US $1.66 billion) to a profit of 323.1 billion yen (US $3.92 billion). Net income increased from a loss of 56 billion yen (US $ 679.4 million) to 289.1 billion yen (US $3.5 billion).
Total vehicle sales for the first half were 3,715 thousand units, an increase of 585 thousand units compared to last fiscal year's first half.
“Operating income improved significantly despite the substantial negative impact from the strong Yen. This was due to our marketing efforts such as improved sales by 585 thousand vehicles and decreased loan-loss and residual-loss related expenses in our financial services for the first quarter, and to our cost reduction efforts such as our company-wide VA activities in close collaborations with our suppliers.” said Toyota Executive Vice President Satoshi Ozawa.
Toyota revised its sales forecast for the fiscal year ending March 31, 2011 from 7.38 million to 7.41 million units, an increase of 30 thousand from its last forecast in August 2010. Based on the assumption of 85 yen to the US Dollar and 112 yen to the Euro on average for the full year, Toyota updated its financial forecast for the full year to net revenues of 19 trillion yen (US $230.5 billion), operating income of 380 billion yen (US $4.6 billion) income before taxes and equity in earnings of affiliated companies of 410 billion yen (US $4.97 billion) and a net income of 350 billion yen (US $4.24 billion).
“We currently find ourselves in a very tough business environment, characterized by the radically and seriously appreciated Yen in recent months, the risk of slowdown in demand recovery in the United States and Europe and falling demand following the end of the eco-car subsidies in Japan. Nevertheless, we will do our utmost in order to deliver as many vehicles as possible to our customers while continuing to improve our profit structure through further fixed cost and variable cost reduction activities.” said Executive Vice President Ozawa.
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