Toyota's 2nd quarter group profit up, overseas sales grow

[Bakemono]

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Japan's No. 1 automaker by sales posted a group net profit of Y303.7 billion in the quarter ended Sept. 30, up 2% from Y297.4 billion a year earlier. The rise was largely due to the dividend contribution from affiliates. On the other hand, the firm's operating profit, an indicator of the profitability of its main business, fell 3% in the latest quarter due to higher costs to ramp up production capacity as well as R&D and other costs. Group operating profit was down to Y404.3 billion from Y417.6 billion.

Still, the Japanese maker of the "Corolla" and gasoline-electric hybrid " Prius" continues to aim for record profits this fiscal year as it expects favorable exchange rates and new model launches to lift its earnings.

Toyota's performance contrasts sharply with its big U.S. rivals: General Motors Corp. (GM) and Ford Motor Co. (F) both posted losses in the latest quarter partly as higher gasoline prices hit sales of their large gas-guzzling vehicles. Japan's major automakers appear to be doing relatively well despite the tough conditions facing the industry. Part of the credit for that goes to the currency: The yen's steady weakening against the dollar raises the value of Japanese firms' overseas sales. Toyota's group sales in the quarter rose 10% to Y4.971 trillion from Y4.515 trillion as its sales grew in all major markets, including Japan, North America, Europe and Asia. In the three months ended September, its global vehicle sales rose 6% to 1.89 million vehicles from a year earlier as sales in North America grew 9% to 554, 000 vehicles, sales in Europe increased 6% to 242,000 vehicles and sales in Asia excluding Japan were up 19% at 219,000 vehicles.

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