Logo of Phnom Penh Post newspaper Phnom Penh Post - Toyota reports record net profit, sales in H1

Toyota reports record net profit, sales in H1

Content image - Phnom Penh Post
Toyota's net profit was boosted by cost-reduction efforts. AFP

Toyota reports record net profit, sales in H1

Japanese car giant Toyota on Thursday reported record net profit and sales for the first half, with cost-cutting efforts helping to boost its balance sheet.

The maker of the Camry sedan and Prius hybrid reported net profit rose 2.6 per cent to 1.27 trillion yen ($11.7 billion) in April-September.

The company kept its full-year net profit forecast at 2.15 trillion yen and operating profit at 2.4 trillion yen on sales of 29.5 trillion yen, though it made a minor change to its forecast for pre-tax profit.

Factors including cost reductions and marketing helped outweigh negative impacts from foreign currency exchange rates, contributing to a 11.3 per cent rise in operating profit, or 1.4 trillion yen for the six months to September, Toyota said in a statement.

“As a result of our work to improve ourselves, many of our customers chose Toyota vehicles. The latest results show that,” Toyota’s executive vice-president Mitsuru Kawai said in a news conference. “We are grateful.”

“We have acted swiftly to change our business model, create alliances, and to make investments for the future,” added operating officer Kenta Kon.

He cited “healthy” sales of new models, including the Rav 4, and strong profits in Japan and North America, thanks to active sales efforts, cost-cutting and effective use of incentives for US buyers.

The firm assumed foreign exchange rates at 107 yen to the dollar for the current year to March, compared with 106 yen to the dollar in the previous estimate.

It also announced it would buy up to 34 million of its own stock, or 1.19 per cent of its outstanding shares, for up to 200 billion yen by the end of the current business year.

Shares in the firm, which had been trading in negative territory in the morning, closed up 1.13 per cent.

“Toyota is enjoying steady global sales although competition is intensifying in the global auto market,” Satoru Takada, auto analyst at research and consulting firm TIW, told AFP ahead of the report.

“Demand for hybrid cars – Toyota’s strength – remains strong as electric cars are still in a transition period,” he said.

However, Japan-US trade negotiations “remain a potential threat to Japanese carmakers”, he warned, adding that “protectionism appears to likely remain unchanged in the US even if the Democrats win the presidency”.

US President Donald Trump’s administration has threatened to impose tariffs on Japanese cars imported to the US market.

MOST VIEWED

  • Without shoes or a helmet, a young cyclist steals the show

    Pech Theara gripped the curved handlebars of his rusty old bike, planted his bare feet on its pedals and stormed as fast as he could towards the finish line. The odds were against him as the 13-year-old faced off against kids with nicer bikes at

  • Phnom Penh-Sihanoukville expressway on schedule

    The construction of the more than $1.9 billion Phnom Penh-Sihanoukville Expressway has not been delayed despite the Covid-19 pandemic, with more than 26 per cent of the project completed and expected to finish in about two years, according to Ministry of Public Works and Transport secretary of

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • PM dispels lockdown rumours, gifts masks

    Prime Minister Hun Sen on November 12 denied rumours that he will lock down the country in response to increased Covid-19 fears, referring to them as propaganda aimed at destabilising the country. In a Facebook post, he said some people had spread rumours that the government

  • SilkAir adds flight to Phnom Penh schedule

    Silkair (Singapore) Pte Ltd is increasing its flight frequency between Phnom Penh and Singapore with a third weekly flight on Saturdays, according to Cambodia Airports’ Facebook page. The other flights offered are on Tuesdays and Sundays, with an estimated Phnom Penh arrival time at 5:35pm