On Wednesday, Toyota announced that its net profit for a full year had tripled to end at $9.7 billion. Cost cutting and a weak yen helped to inflate the Japanese and world’s largest automaker’s bottom line.
The automaker giant also announced it was headed towards another huge profit for its current fiscal year, which underscored the recovery amongst Japan’s largest automakers following the earthquake and subsequent tsunami tragedy of 2011 that devastated production and sales. It highlights how strong the demand is in the key U.S. and Asian markets.
Toyota’s auto sales in China, the largest vehicle market in the world, which have been hurt due to a territorial dispute between Beijing and Tokyo, showed signs of recovering.
Since last November, the yen has lost close to 20% of its value against the U.S. dollar. That has helped to boost the competitiveness overseas of Japanese business and hiked the value of the foreign income when repatriated.
Toyota mentioned its currency as among the different factors for its jump in profits, after rival Honda, also based in Japan, announced its profit through March for the year had jumped by nearly 74% because of strong sales overseas, cost cutting and a weaker yen.
On Wednesday, the Japanese automaker giant said its net income for the full year had shot up by 18.7% over last year.
The Corolla and Camry maker, which in 2012 passed General Motors as the largest automaker in the world, said it expects a very strong fiscal year that will end in March of 2014.
Sales globally of vehicles for Toyota were 8.87 million, despite flat results from the recession riddled continent of Europe. This year the company expects unit sales to reach 9.1 million for its fiscal year.
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