The net profit of Japan's largest automobile company Toyota Motor Corp (T: 7203) in the first quarter of 2018 fiscal, which year ended June 30, increased by 11% to 613 billion yen ($ 5.57 billion), from 552.5 billion yen a year earlier.
The figure has improved thanks to a strong increase in car sales.
As reported in the press release of Toyota, operating profit decreased by 10.6%, to 574.29 billion yen, while the analysts on average expected this figure at 538.3 billion yen. Toyota was forced to raise discounts in the US market due to tougher competition, which led to a decrease in profitability for operating profit from 9.5% to 8.1%.
Quarterly revenue increased by 7%, from 6.59 trillion yen to 7.05 trillion yen.
In North America, Toyota sales rose 1% in April-June, to 723,000 cars, in Asia (including China) it fell 5.4% to 363,000 cars. At the same time, the concern lowered the annual forecast for North America from 2.82 million to 2.78 million cars.
In Japan, sales volumes increased by 33 thousand cars (6.5%), to 544.2 thousand.
After Honda (T: 7267), Toyota raised its annual profit forecasts due to the expected weakening of the yen.
According to Toyota's forecast, operating profit in the current financial year, which will end on March 31, 2018, will decrease by 2.6%, to 1.85 trillion yen, and not to 1.6 trillion yen, as expected in May. Net income is likely to decline by 44%, to 1.75 trillion yen, instead of the previously forecast at 1.5 trillion yen. The new revenue forecast is raised by 1 trillion yen to 28.5 trillion yen.
Japanese automakers Toyota Motor Corp (T: 7203) and Mazda Motor Corp on Friday are expected to announce plans to build a $ 1.6 billion plant in the US that will be part of a new joint venture between the two companies, a source familiar with the situation said.
The plant, which will open in 2021, will be able to produce 300,000 cars a year, the source said. According to him, the two automakers will share production. The number of employees will be about 4,000 people.
The new plant could strengthen the position of US President Donald Trump, who during the campaign promised to expand production and increase employment in the auto sector.