Toyota’s Record Quarter Buoyed by Emerging Markets
February 05, 2008

Toyota posted a profit that set a new record for a third quarter, thanks to strong sales in emerging markets, but the quarter demonstrated Toyota’s growth is slowing.

Toyota reported a profit of $4.29 billion, up 7.5 percent from the year ago for the October-December fiscal quarter. Revenues rose 9.2 percent to $62.79 billion. Toyota sold 2.281 million vehicles in the period, up 5.8 percent from a year ago.

Despite setting a quarterly profit record, the 7.5 percent increase in income represents the smallest gain since December 2006, and the 9.2 percent sales increase was the smallest gain in 2½ years, according to Bloomberg News’ records.

Higher sales in China, Africa and South America offset declining U.S. sales — where sales fell by 8,000 vehicles to 756,000 in the quarter — and the stronger yen, which cost Toyota $187 million in currency exchange in the quarter.

For the first nine months of its fiscal year, Toyota has earned $13.11 billion in profits, for a 16.4 percent increase, on 11.9 percent higher revenues of $184.54 billion.

Toyota warns fourth-quarter profits may decline due to slowing consumer spending in the U.S. and a stronger yen that is eroding profits, especially from the Japan-made Prius and Lexus models.

Still, Toyota is sticking with its sales forecast for the fiscal year, which ends March 31, at 8.93 million vehicles, up 4.8 percent from the previous fiscal year. The automaker predicts emerging markets ultimately will make up for weak markets of the U.S., Europe and Japan. In North America, Toyota lowered its forecast by 20,000 units to 2.97 million vehicles; it also cut its projections for Japan and Europe. At the same time, Toyota raised sales forecasts for Asia and other regions.

Analysts project Toyota’s full-year profit will be $15.91 billion on $238.61 billion in sales.

Posted by Michelle Krebs at 6:47 AM under Business , Toyota | Comments (0) | digg this | Seed Newsvine