Toyota Motor Corp announced a 13.5 percent rise in second-quarter profit, buoyed primarily by a weak yen that offset slowing demand in emerging economies. For the quarter ending Sept. 30, the carmaker's net income stood at 611.7 billion yen ($5 billion), up from 539 million yen ($4.4 billion) a year earlier.
The second-quarter operating profit also rose 26 percent -- to 827.4 billion yen ($6.8 billion) from 659.2 billion yen ($5.4 billion) in the same period last year. The company's stock closed up 0.52 percent in Tokyo.
The world’s top-selling automaker maintained its full-year profit forecast at a record 2.25 trillion yen ($18.5 billion) -- a 3.5 percent increase over the past year -- and annual revenue outlook of 27.5 trillion yen ($225.6 billion) -- an yearly increase of 1 percent.
The company also announced that it would repurchase 150 billion yen ($1.23 billion) worth of its shares between Feb. 1 and March 31, in addition to the 600 billion yen ($4.9 billion) buyback announced in June.
“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,” Toyota’s Managing Officer Tetsuya Otake said, in a statement.
Even as the company’s quarterly sales increased by 8.4 percent to 7.1 trillion yen ($58.2 billion), Toyota cut its annual sales target, citing slowing sales in Japan and emerging markets. It now expects to sell 8.75 million vehicles this fiscal year, down from its forecast of 8.95 million vehicles.
“The auto market especially in developed economies will remain strong, but Asia may not recover as much as we are hoping to see, so we are more cautious on our emerging market forecast,” Otake told reporters.