Toyota cruised back to profit in the latest quarter as the world’s top carmaker cut costs and hitched a ride on the global auto sales recovery while fighting to salvage its reputation for quality.
Toyota Motor Corp said yesterday that January-March profit totaled ¥112 billion (US$1.2 billion) compared with a ¥766 billion loss the year before.
Quarterly revenue jumped to ¥5.28 trillion from ¥3.54 trillion a year earlier, when purchases of cars and other vehicles slumped amid the global financial crisis.
Whether Toyota can continue its recovery rests in part on salvaging its reputation after recalling more than 8 million cars worldwide for faulty gas pedals, a braking software glitch, faulty floor mats and other defects.
On Monday, the US National Highway Traffic Safety Administration said it was carrying out a new investigation into Toyota to see whether it had stalled on a recall for a steering defect in 2005 in the US. It had carried out recalls for similar problems in Japan in 2004.
Although sales have held up in recent months, much of that came from unprecedented incentives to lure customers in North America as well as growth from fast-growing Asian nations like China.
For the fiscal year ending March 31, Toyota posted a ¥209 billion profit, a dramatic reversal from a 437 billion loss in the previous year, which was the automaker’s worst annual red ink since being founded in 1937.
Toyota is forecasting even better results for the fiscal year ending in March next year, with profit rising 48 percent to ¥310 billion.
Toyota president Akio Toyoda expressed gratitude to dealers, suppliers, employees and buyers for the earnings results.
“I am sincerely grateful to our customers,” he said.
Global sales for the year ended March 31 totaled 7.24 million vehicles, down 4 percent from the previous year. Toyota is expecting that to improve to 7.29 million for the current fiscal year.
Meanwhile, Toyota’s Prius ranked as Japan’s top-selling car in April, clinching the No. 1 spot for the 12th straight month despite a recall of the hybrid vehicle for braking problems.
The company sold 26,482 of the gas-electric cars in Japan last month, the Japan Automobile Dealers Association said yesterday.
The Prius, now in its third generation since its 1997 introduction, is the best-selling hybrid in the world, with a total of 1.74 million sold, according to Toyota.
Rival Honda Motor Co’s fuel-efficient FIT placed second, with sales of 12,222 units, the association said.
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