Weak yen boosts Toyota profit despite sales declines
A weak yen has helped Toyota offset potential trouble from declining sales across the globe.
The company posted a $10.3 billion net profit in its fiscal first half, ending in September, representing an increase of 12 percent from the same period last year. Operating income grew faster than net revenues, which jumped by 8.9 percent to $115.5 billion yen.
Global sales fell by 4.6 percent to 4,278,007 during the same period. Deliveries were up in North America, however the strong markets did not offset declines in Europe, Asia and other regions.
“Despite decreased vehicle sales and increased expenses to promote the Toyota New Global Architecture and research into cutting-edge technologies, progress in cost reduction and other profit improvement activities, in addition to favorable foreign exchange rates, contributed to the increase in operating income,” said Toyota managing officer Tetsuya Otake.
Expecting to achieve record profits for the year, Toyota has increased its stock-repurchase targets. The company now plans to buy back an additional 150 billion yen (~$1.2 billion USD) worth of shares before the end of its fiscal year.
The Volkswagen emissions scandal could prove beneficial for Toyota, as the Japanese company inched ahead of its German rival last month to keep its crown as world’s largest automaker.