Toyota Motor Corporation (TMC) announced its financial results for April to September posting record profits. The company also increased its sales forecast.
On Wednesday, November 6, the Japanese automaker announced net revenues of 12.53 trillion yen, which is an increase of 14.9 percent compared to the same period in the previous fiscal year. Operating income for the company increased from 693.7 billion yen to 1.25 trillion yen and the net income increased from 548.2 billion yen to 1.00 trillion yen.
For the July-September quarter, Toyota's net profit rose 70 percent to 438.4 billion yen, or slightly lower than the average estimate of 441.01 billion yen made in a Thomson Reuters I/B/E/S survey of six analysts.
"In addition to the impact of the weaker yen, operating income increased due to our efforts with our suppliers and distributors for profit improvement through cost reduction and marketing activities, such as enhancement of the model mix," said Nobuyori Kodaira, Executive Vice President at TMC.
The company announced that it now anticipates a net profit of 1.67 trillion yen in the financial year ending March 31, 2014, up from previous forecast of 1.48 trillion yen.
The car maker also reported that vehicle sales reduced to 4,467,761 units, which is a decrease by 48,425 units.
Toyota said it has increased its vehicle sales forecast for North America from 2.61 million units to 2.63 million units. However, the company also reduced its vehicle sales forecast in Asia from 1.7 million units to 1.64 million units.
The U.S. is one of the biggest markets for Toyota; however, the car maker has been surrounded with recall issues over the last few years. Toyota has recalled over 20 million vehicles in the past two years due to various problems.
Recently, an Oklahoma jury has also ordered a $3 million verdict against the Japanese car maker in a sudden acceleration crash case. The passenger involved in a Toyota Camry crash case died, while the driver of the car suffered injuries. There are still many lawsuits pending in various states and courts in the U.S. Even though the company has increased its sales forecast in North America, market observers believe that such court cases may impact on the company's sales in the U.S.
The company's shares increased 0.5 percent after the earnings call.
