Toyota posts profit gain, outshines US auto competition

Toyota Motor Corp's profit rose 2 percent in the July-September quarter, lifted by growing sales around the world -- in sharp contrast with the dismal results at US counterparts General Motors and Ford.

Japan's No. 1 automaker on Friday reported its group net profit for the fiscal second quarter rose to ¥303.7 billion (US$2.6 billion) from ¥297.4 billion the same period a year ago.

Sales for the quarter rose 9 percent to ¥4.97 trillion from ¥4.5 trillion.

The results put Toyota on pace to set a record net profit for the full fiscal year through March next year for the fourth straight year.

Toyota, the maker of the best-selling Camry compact and Prius gas-and-electric hybrid cars, does not give consolidated forecasts, but it said yesterday it expected to sell 8.03 million vehicles for the current fiscal year, up 60,000 vehicles from its August forecast, and above the 7.4 million vehicles sold the previous year.

That annual figure for fiscal 2005 is still fewer than General Motors Corp's yearly sales, but if the current trends continue, Toyota will overtake GM in the next few years, some analysts say.

Toyota has already passed up Ford Motor Co as the world's second biggest automaker. GM produced 9.1 million vehicles last year.

"We attained a high level of profit while expanding production capacity and developing advanced technology and future products in response to strong demand worldwide," Toyota Executive Vice President Mitsuo Kinoshita said at a press conference.

Both GM and Ford are seeing their US market share dwindle at the expense of Toyota and other Asian automakers.

GM and Ford have also been offering huge incentive discounts to sell their cars, which have slammed earnings.

Detroit-based GM lost more than US$3 billion in the first nine months of this year.

Ford, based in Dearborn, Michigan, recently reported a third-quarter loss of US$284 million.

For the fiscal first half, Toyota's profit dipped 2 percent to ¥570.5 billion from ¥584 billion the same period the previous year.

But first half sales surged 10 percent to ¥9.95 trillion from ¥9 trillion the previous year.

Vehicle sales for the six months climbed 7.5 percent to 3.83 million vehicles -- a half-year record high -- from 3.5 million vehicles.

Operating profit fell nearly 7 percent compared to the same period a year ago as higher material costs and the shift in demand to smaller cars with lower profit margins squeezed earnings.