TOKYO - Toyota Motor Corp. will likely post a group operating profit of about 100 billion yen ($1.1 billion) for the April-June period thanks to solid sales, the Nikkei business daily reported.

But the automaker, which had a loss of 194.8 billion yen in the same period last year, is likely to keep its annual profit forecast unchanged because of uncertainty over the European and U.S. economies, the Sunday report also said, without citing sources, according to Reuters.

Toyota, the world's biggest automaker, has been plagued since last September by a crisis over safety issues that have led to the recall of more than 10 million vehicles globally.

Toyota and rival Honda Motor Co. have also been hit by strikes in the past few months at Chinese plants providing parts. Both makers suspended production in China to varying degrees due to supply shortages caused by strikes.

But strong sales in emerging or resource-rich countries, such as in the Middle East, helped Toyota shake off negative factors, including a stronger yen.

Toyota also saw strong sales of its Prius hybrid model in Japan, the Nikkei report said.

In the three months to June, the Toyota Group -- including Hino Motors Ltd. and Daihatsu Motor Co. -- sold between 1.8 million and 1.9 million vehicles, about 30 percent more than a year earlier, the report said.

Toyota's sales are also picking up in North America after being hurt by the recalls, the paper said.

The automaker's sales could lose some steam later in the year, however, as the Japanese government ends subsidies on purchasing so-called eco cars in September, the Nikkei said.

Toyota officials were not immediately available for comment.

Toyota projects an operating profit of 280 billion yen for the current fiscal year to March, up 90 percent from the previous year.

About the author
Staff Writer

Staff Writer

Administrator

Staff writers for P&A Online are professional journalists. Industry-specific information is reviewed by topic experts to ensure accuracy.

View Bio
0 Comments