TOKYO – Japanese automaker Toyota recorded a net income of 1.0713 trillion yen ($9.4 billion) between April and September, a 13.2 percent interannual jump, due mainly to favorable foreign exchange rate movements, the company said in a statement released on Tuesday.
The car manufacturer – headquartered in Aichi in central Japan – also had an operating income of 1.0965 trillion yen, 1.8 percent less than a year ago, owing to an increase in expenses, the statement said.
Net revenues for the period also rose 8.6 percent to 14.19 trillion yen.
“Despite the positive effect of yen depreciation and cost reduction efforts, operating income decreased by 20.3 billion yen mainly due to the effects of marketing activities and an increase in expenses,” Toyota’s Executive Vice President Osamu Nagata said.
A weaker yen, which makes Japanese products more cost-competitive abroad and boosts the value of repatriated overseas earnings, helped Toyota offset an increase in expenses “by an increase of 100 billion yen due to cost reduction efforts and currency fluctuations of 100 billion yen,” according to the company’s note.
Consolidated vehicle sales for the six-month period climbed to 4,389,435 units worldwide, a 0.59 percent year-on-year.
Toyota vehicle sales in Japan and Latin America also increased between April and September, as well as in Europe, where they grew 8 percent.
In Asia and North America, the company’s most important markets, sales fell.
In view of the latest sales trends worldwide, Toyota decided on Tuesday to revise its consolidated vehicle sales forecast for the 2017 fiscal year – which will end in Japan on March 31, 2018 – from 8.9 million units to 8.95 million units.
The leading Japanese automaker also increased its consolidated financial forecasts for the current financial year and now hopes to obtain a net income of 1.95 trillion yen and an operating income of 2 trillion yen.
Toyota also estimates that its consolidated net revenue will rise to 28.5 trillion yen during the 2017 fiscal year.
Coinciding with the release of its half-year results, the company announced that it will pay 100 yen per share as the interim dividend on common shares and is planning to buy back up to 250 billion yen, or 45 million shares, of the company’s common stock.