Toyota 1st in Japan to Top 1 T. Yen in Qtr. Profit

Tokyo, Aug. 1 (Jiji Press)--Toyota Motor Corp. said Tuesday its consolidated operating profit in April-June topped 1 trillion yen, thanks to robust production and sales backed by an easing in global chip shortages and an economic recovery from the slump caused by the COVID-19 pandemic. Toyota became the first Japanese company to report a quarterly operating profit of over 1 trillion yen, according to SMBC Nikko Securities Inc. In the first quarter of fiscal 2023, the operating profit reached 1,120.9 billion yen, up 93.7 pct from a year before. Sales increased 24.2 pct to 10,546.8 billion yen, hitting a record high for three years in a row. Net profit soared 78.0 pct to 1,311.3 billion yen, exceeding 1 trillion yen for the first time, thanks to vehicle price hikes and the yen's weakening. Toyota kept unchanged its group earnings estimates for the full year to March 2024. Sales are put at 38 trillion yen, up 2.3 pct from the previous year, operating profit at 3 trillion yen, up 10.1 pct, and net profit at 2.58 trillion yen, up 5.2 pct. "There are many unstable factors," Chief Communication Officer Jun Nagata said regarding an intensifying price war with Chinese competitors and higher U.S. interest rates, which may dampen consumer sentiment. The automaker held its fiscal 2023 worldwide production plan steady at 10.1 million units. In a conservative decision, Toyota kept its assumed exchange rate unchanged from the beginning of fiscal 2023 at 125 yen per dollar and 135 yen per euro. Global vehicle sales grew 8.4 pct to 2.53 million units in April-June. All regions logged expansion including Japan, North America and Asia. Higher material costs pushed down the operating profit by some 230 billion yen, but it was more than offset by a positive effect worth 260 billion yen from the sales growth. The dollar's rise to 137 yen from 130 yen a year before and the euro's ascent to 150 yen from 138 yen also helped jack up Toyota's exports and overseas sales. END