Sales and profits increased strongly at Toyota Motor Corporation as the Japanese giant this morning posted a profit in its first quarter of fiscal year 2011. TMC had produced a large loss in the year earlier quarter.
Toyota made a 190.47 yen billion net profit in its quarter ended June 30, a turnaround from net loss of 77.82 billion yen in the same quarter a year earlier. This is Toyota’s highest quarterly net profit since Q2 of 2008.
On a consolidated basis, net revenues for the first quarter totaled 4,871.8 billion yen, an increase of 27.0% compared to the same period last fiscal year. Operating income increased from a loss of 194.9 billion yen to 211.6 billion yen, while income before income taxes and equity in earnings of affiliated companies was 263.0 billion yen. Operating income increased by 406.5 billion yen.
Toyota said major factors contributing to the increase include the effects of marketing efforts of 400 billion yen and cost reduction efforts of 50 billion yen. The finance unit also posted strong profits as residual values increased.
Toyota said it expects to increase marketing expenses in the second quarter to increase volume. In the U.S. for example, Toyota vehicle sales decreased by 7%, even though the overall market increased 5% in August. North America remains Toyota’s largest market, followed by Japan.