Toyota Reports Fourfold Profit

Toyota posted a second quarter of the fiscal year profit figure of 98.7 billion yen ($1.2 billion) last Friday, a spectacular increase over last year's 21.8 billion yen profit, but lower than expected by financial analysts. Total sales for this quarter were 4.807 trillion yen ($59.5 billion), a 5.8 increase over last quarter. This comes as a surprise after a series of recalls have tarnished the company's image in recent years.

Sales on the US market have been exhibiting poor response to stimulation from incentives, indicating a lack of consumer confidence in the brand in this crucial market. Additionally, Toyota also suffers from a diminished value of overseas sales, like other Japanese exporters, due to a strong yen.

This gives the world's top selling automaker the opportunity for a yearly profit forecast raise, albeit modestly, to 350 billion yen ($4.3 billion) from an early forecast for 340 billion yen ($4.2 billion) profit.

That would mark a 67 percent backlash from last year, when the maker of the Prius hybrid and the Camry sedan was battered by the recall misfortune.

The global sales forecast for the full year was raised to 7.41 million vehicles from 7.38 million. That would be a 2.4 percent gain from 7.24 million units sold the previous year.

"The situation may be tough for us, but we will try to sell one car at a time," said Executive Vice President Satoshi Ozawa, expressing his positive view on this matter:

Toyota has recalled more than 11 million vehicles around the world for various issues including faulty gas pedals, floor mats that can trap accelerators, defective braking and stalling engines.

Toyota stock finished 2,964 yen, up 1.9 percent. Earnings were announced after trading ended.
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