Toyota Posts Record Profit, Fueled by Weak Yen - Wall Street Journal
The car maker Tuesday reported a 10% rise in net profit to ¥646. 4 billion ($5. 2 billion) for its first quarter, even as slowing demand in Japan and Southeast Asia slightly reduced its global vehicle sales. In China, the world’s biggest auto market where demand is cooling and competition is intensifying, Toyota said it ramped up car sales volume since April, but like other car makers, it had to resort to greater discounts and increased incentives to... In April-June 2014, Toyota’s average exchange rate was ¥102 against the dollar, while for the same period this year, that rate was ¥124. The depreciating yen triggered a revision in the car maker’s production forecast. Steady export demand for vehicles like the Lexus NX crossover sport-utility vehicle and stronger-than-expected domestic sales of certain models helped, executives said. While some global rivals have been hit by the recent slowdown in China’s auto market—sales to Chinese buyers have contributed as much as half of the global net profit for some auto makers in recent years, according to analyst estimates—Toyota and... In January-June, the pace of passenger car sales growth in China slowed significantly compared with previous years, rising 4. 8% to 10 million vehicles, triggering concerns among companies like. Source: www.wsj.com
