Toyota models at Auto Guangzhou in Guangzhou, China. The company's earnings have soared. Bobby Yip/Reuters
Toyota models at Auto Guangzhou in Guangzhou, China. The company's earnings have soared. Bobby Yip/Reuters
Toyota models at Auto Guangzhou in Guangzhou, China. The company's earnings have soared. Bobby Yip/Reuters
Toyota models at Auto Guangzhou in Guangzhou, China. The company's earnings have soared. Bobby Yip/Reuters

Toyota profit surges 54 per cent in third quarter


  • English
  • Arabic

Toyota lifted its full-year profit forecast by 10 per cent on Tuesday after posting its best quarterly operating profit in two years, boosted by a weaker yen and strong sales at home.

Japan's biggest car maker now expects operating profit to increase 10 per cent on the year to ¥2.2 trillion (Dh74.29 billion), from ¥1.99 tn a year earlier and marking an upgrade from its previous forecast of ¥2tn.

It expects net profit to come in at ¥2.4tn, up from a previous forecast for ¥1.95tn and on track for a record high.

For the third quarter, Toyota posted ¥673.6bn in operating profit for October-December, a 54 per cent jump from a year earlier. The result exceeded a mean estimate of ¥527.22bn taken from 11 analysts polled by Reuters, and was its highest since October-December 2015.

Operating profit in Japan more than doubled as vehicle sales rose at home, while the automaker posted lower sales in North America, its biggest market, where it is struggling with heavy discounting as it tries to produce and sell larger vehicles.

Toyota sold 2.63 million vehicles globally in October-December, up from 2.28 million a year prior. Sales in Japan rose 3 per cent, while sales North America fell to 735,000 from 745,000 units. Sales in Europe rose 1.7 per cent.

Operating profit in North America tumbled 53.1 per cent. Toyota has been struggling with rising marketing costs in the region amid steep discounting among car makers trying to sell more cars in the slowing US market.

_______________

Read more:

Nissan to spend Dh34bn in push to crack China

Toyota and Panasonic eye tie-up for electric car power equipment

_______________

Toyota has had a bumpy ride in the United States, its biggest market where it trails only General Motors and Ford in terms of sales, as car makers continue to angle for higher market share as overall sales retreat from a record high hit in 2016.

Profitability in the US market is key for Toyota to help generate funds as it invests heavily in new technologies including self-driving functions, electric cars and new mobility services.

As US drivers continue to gravitate towards larger pick-up trucks and 4x4s over saloons and hatchbacks, Toyota, best known for its Camry and Corolla saloons, has been scrambling to shift more production from cars to trucks.

Meanwhile, it has been selling its sedans at hefty discounts for much of 2017 to bolster demand for models like the Camry, while also raising incentives on its 4x4s and trucks to remain competitive in the US market.

This has lifted overall marketing costs per vehicle by 10 per cent in 2017 from 2016, according to figures from Autodata.

Quarter-finals

Saturday (all times UAE)

England v Australia, 11.15am 
New Zealand v Ireland, 2.15pm

Sunday

Wales v France, 11.15am
Japan v South Africa, 2.15pm

If you go...

Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.

Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50

McLaren GT specs

Engine: 4-litre twin-turbo V8

Transmission: seven-speed

Power: 620bhp

Torque: 630Nm

Price: Dh875,000

On sale: now

THE SPECS

Engine: 1.6-litre turbo

Transmission: six-speed automatic

Power: 165hp

Torque: 240Nm

Price: From Dh89,000 (Enjoy), Dh99,900 (Innovation)

On sale: Now

UEFA CHAMPIONS LEAGUE FIXTURES

All kick-off times 10.45pm UAE ( 4 GMT) unless stated

Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid

Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona

The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%203S%20Money%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202018%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20London%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ivan%20Zhiznevsky%2C%20Eugene%20Dugaev%20and%20Andrei%20Dikouchine%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20%245.6%20million%20raised%20in%20total%3C%2Fp%3E%0A
Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
The specs: Lamborghini Aventador SVJ

Price, base: Dh1,731,672

Engine: 6.5-litre V12

Gearbox: Seven-speed automatic

Power: 770hp @ 8,500rpm

Torque: 720Nm @ 6,750rpm

Fuel economy: 19.6L / 100km