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Toyota profits rebound

Toyota profits rebound
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Toyota has bounced back to its highest profit in four years as it recovers from last year’s earthquake and tsunami.

Quarterly operating profit was the equivalent of almost 3.7 billion euros after it took back the title of number one in worldwide sales earlier this year.

The company also raised its global sales target for this year.

Toyota’s Senior Managing Officer, Takhiko Ijichi said: “We plan to continue to increase our earnings and no matter what, we will make sure that we reach this goal and are profitable by next March.”

Strong demand continues for cars like the Camry and Prius in key markets such as the United States and Japan.

Toyota’s better-than-expected performance contrasted with its closest Japanese rivals Honda and Nissan, but analysts said it faces challenges from the strong yen because it makes so many of its cars in Japan.

Even after raising its global output target, Toyota still manufactures nearly 40 percent of its vehicles in Japan, compared with about 25 percent for Nissan and Honda.

Despite its rebound, Toyota executives said the company was determined to manage its growth more carefully than it had in the boom years before 2008. Executives have said Toyota lost its focus on quality and came to underestimate the company’s reliance on a weak yen in pursuing growth.

“Unless we operate based on a solid recognition that growing our business means new risks, we are at risk of going down the same path as before,” Ijichi told reporters.