Toyota Notches $14M Profit in Q2
Toyota Motor Corp., the biggest car manufacturer in the world, was able to eked out a $14 million (1.1 billion yen) profit in the second quarter of 2011 following the massive twin disaster that disrupted its production lines.
The world’s largest automaker Toyota Motor Corp. on Tuesday reported a $14 million profit in the second quarter of this year, slowly mounting a comeback following the March earthquake and tsunami disaster that hit northeastern Japan.
In a report, Toyota said that its quarterly earnings from April to June 2011 reached $14 million (1.1 billion yen), way below the 190.4 billion yen it earned during the same period in 2010.
The company attributed the massive drop in its earnings to the unfavorable exchange rate, which has erased more than $649 million of profit during the period.
Meanwhile, Toyota said that its quarterly sales plunged by at least 29 percent to $44.68 billion as the company sold fewer cars following the twin disaster, which has devastated majority of its parts supply chain.
But despite major disruption in its production lines, the world’s largest automaker adjusted upward its annual profit forecast to $5.1 billion from $3.6 billion for 2011 – still lower by 4 percent from 2010.
It also raised its annual sales expectations to $247 billion from the previous $242 billion, saying that the exchange rate between the dollar and the yen would start to stabilize in the coming months.