Fuel-Efficient Cars Help Toyota to Strong Profits August 4, 2006
Toyota passed Ford Motor Company in July sales to rank as the second-biggest automaker behind General Motors.
TOKYO, Aug. 4 ? Toyota Motor Company said its income jumped 39.2 percent to $3.2 billion during the second quarter, boosted by strong sales of fuel-efficient vehicles in the United States, where it passed Ford Motor Company in July sales to rank as the second-biggest automaker behind General Motors.
Toyota, which already ranks as No. 2 in the world, appears on pace to pass G.M. as the world?s biggest auto company, perhaps as soon as this year.
Toyota, which earned $2.3 billion in last year?s second quarter, said its revenue rose 13.2 percent while its vehicle sales rose nearly 8 percent worldwide, to just over 2 million.
For the full year, Toyota said it still expects to meet its profit forecast of about $11.3 billion and its sales forecast of $194 billion.
Toyota?s sales were led by the Corolla, the best-selling small car in the United States, the RAV-4, a small sport utility vehicle, and the FJ Cruiser, a gutsy S.U.V. aimed at younger buyers. Toyota also said its results were boosted by the strength of the yen.
Friday?s results came as Toyota has speeded efforts to deal with a spate of recalls, both in the United States and worldwide, that have triggered an investigation by the Japanese government.
Toyota?s robust showing is a sharp contrast to the struggles at G.M. and Ford, which have launched restructuring plans in an effort to reverse losses in their North American operations.
This week, both G.M. and Ford said their second-quarter losses were deeper than they originally disclosed, due to revisions in their cost estimates.
Toyota?s strong results came on top of Honda?s $1.2 billion profit during the second quarter, up 30 percent from 2005.
Many analysts believe Toyota will pass G.M. this year as the world?s biggest auto company, given an aggressive expansion plan that comes as G.M. is losing market share in the United States. Toyota is scouting locations for another assembly plant and a new engine plant, and will open a new truck factory in San Antonio this fall.
On Friday, Toyota said it was on track to meet its forecast of selling 8.45 million vehicles during its current fiscal year, which ends March 31.
G.M. has not released a sales forecast, but it sold just over 9.1 million vehicles last year.
Toyota said it earned an operating profit of $2 billion in North America, where its sales rose 16.5 percent during the quarter. Sales were boosted by the introduction of its new subcompact, the Yaris, which it has sold overseas for the past few years. It also introduced a redesigned version of the Camry sedan, the most popular family car in the United States.
Meanwhile, sales in Europe rose 20.3 percent, where Toyota earned an operating profit of $319 million. In Europe, as in the United States, the Yaris and RAV-4 are among its strongest selling vehicles.
- Posted in : Uncategorized, Toyota
- Author : arnold
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