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Toyota Profit Forecast Goes Up as U.S. Sales Recover

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On: Mon, Aug 9, 2010 at 9:44AM | By: Sherry Christiansen


Toyota Profit Forecast Goes Up as U.S. Sales Recover

According to a recent Bloomberg News report, “Toyota may post net income of 340 billion yen ($3.98 billion) in the year ending in March, compared with an earlier estimate of 310 billion yen, it said in a statement today. For the fiscal first quarter, the company swung to a 190.47 billion yen ($2.22 billion) profit from a year-earlier loss.”

Toyota sales around the world, including Japan, Thailand, and Indonesia are helping to raise the sales record which supports the company’s economic recovery that resulted from the damaging effects of the massive recall related to problems with unintended acceleration. According to a Toyota spokesperson, sales in Asia “are growing with great momentum.”  Japanese  subsidies are attributed in part for making the Prius the world's best-selling hybrid model, and the top selling car in Japan this year.

As the Japanese automaker has raised the bar for future net profits, so has its number one competitor in the United States, Honda Motor Company, which followed suit to lift its sales forecast as well.


Toyota sales around the world, including Japan, Thailand, and Indonesia are helping to raise the sales record which supports the company’s economic recovery that resulted from damaging effects from the massive recall of Toyota cars and Trucks related to problems with unintended acceleration. According to a Toyota spokesperson; sales in Asia “are growing with great momentum.” Japanese subsidies are attributed in part for making the Prius the world's best-selling hybrid model, and the top selling car in Japan this year.
As the Japanese automaker has raised the bar for future net profits, so has its number one competitor in the United States; Honda Motor Company which followed suit to lift up its sales forecast as well.
“Toyota is now at a point where they feel comfortable giving good news,” said Yuuki Sakurai, CEO of Fukoku Capital Management in Tokyo. “The recall issue has settled down in the U.S. and China.”
The first quarter sales record, according to Toyota, shows a 36% increase in North America, and although sales fell in July (as they did industry wide) by 3.2%, the company remains hopeful that third quarter profits will continue to climb.
In the stock market, shares are down 20% this year for Toyota Motor Corporation, as compared to an 11% decline for Honda and a 23% increase for Hyundai Motor Co.
Toyota’s global sales forecast has been raised from 7.29 million to 7.38 million vehicles for 2011.
Toyota's profit is up this year as compared with a loss of 78 billion yen a year earlier. Sales climbed 27% to 4.87 trillion yen from 3.84 trillion yen.
As Toyota begins to see financial recovery, the company continues to recall more vehicles. Just last month Toyota announced a new recall for over 400 thousand Land Cruiser SUV’s that had defective steering parts.
Although U.S. sales declined last month; worldwide sales are up 5.2% as Toyota adds new sales incentives on average of $2,235 per vehicle in order to help boost sales.
According to a statement by Naoki Fujiwara, fund manager at Shinkin Asset Management Co. in Tokyo, “Recovery in North America is less than stellar. I'm worried that Toyota's sales incentives in the U.S. are ballooning."
"Toyota is now at a point where they feel comfortable giving good news,” said Yuuki Sakurai, CEO of Fukoku Capital Management in Tokyo. “The recall issue has settled down in the U.S. and China.”

The first quarter sales record, according to Toyota, shows a 36% increase in North America, and although sales fell in July (as they did industry-wide) by 3.2%, the company remains hopeful that third quarter profits will continue to climb.

In the stock market, shares are down 20% this year for Toyota Motor Corporation, as compared to an 11% decline for Honda and a 23% increase for Hyundai Motor Co.

Toyota’s global sales forecast has been raised from 7.29 million to 7.38 million vehicles for 2011. Toyota's profit is up this year as compared with a loss of 78 billion yen a year earlier. Sales climbed 27% to 4.87 trillion yen from 3.84 trillion yen.

As Toyota begins to see financial recovery, the company continues to recall more vehicles. Just last month Toyota announced a new recall for over 400,000 Land Cruiser SUVs that had defective steering parts.

Although U.S. sales declined last month, worldwide sales are up 5.2% as Toyota adds new sales incentives—on average of $2,235 per vehicle—in order to help boost sales.



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