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Toyota reports 7.3% boost in profit; GM in the headlights

February 7, 2007
By Ken Worsley


Toyota’s quarterly figures showed a 426.8 billion yen (US$3.6 billion) profit in the third quarter, up from 397.6 billion yen a year earlier. Revenues rose 15.2 percent to a ¥6.15 trillion. Both are records for the automaker.

In terms of units, Toyota moved 2.16 million vehicles in the quarter being reported, and thus stays on pace to overtake GM as the world’s #1 automaker sometime in 2007.

Much of Toyota’s profit comes on strong sales in foreign markets, particularly the US and Europe. As noted at this site, Toyota has also been part of the group of Japanese automakers that have been dominant in the Chinese market over the past few years.

The American Council for an Energy-Efficient Economy (ACEEE) recently named the Toyota Prius as the world’s second best “Green Car,” lending the company further credibility within the environmental community (It was beat by the Honda Civic hybrid).

Now is when the story comes back to interest rates, the G7, and Japan. Despite the claims of Japanese ministers that the G7 meetings will not focus on Japanese exchange or interest rates, it’s starting to look like that’s exactly what’s on the agenda; the market players seem to be trying to work it into their efficiency. If the pressure is put on, Toyota will undoubtedly be hurt in terms of profit. We might see some pressure should the yen start seriously testing the 125 level and lower against the dollar.

Then again, maybe it won’t come up…after all, the world’s #1 automaker is measured in units sold, not profit. Which is Toyota really after? You only get one guess.

Filed Under Automotive, Business, Finance 

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Comments

2 Responses to “Toyota reports 7.3% boost in profit; GM in the headlights”

  1. Ali on February 8th, 2007 4:33 am

    Go Toyota!

    Fantastic firm. Met a HF manager that had a large long position in them as of last November. He was advised to make sure he turned up to a meeting with their CFO in a toyota!

    No doubt the Yen is helping their exports to the US, China and the GCC (the latter two being pegged fast to the USD).

    I wonder how the EU initiative to cut Co2 car emissions will fair on European manufacturers

  2. Trans-Pacific Radio » Currency manipulation, protectionism, Henry Paulson and the Bank of Japan :: Independent Podcasts from Tokyo, Japan - Japanese News, Politics, Business and Economy on December 3rd, 2007 2:27 am

    […] Toyota starts to really catch GM, we’re in for a war of words over currencies. And now that Toyota’s reported 7.3% gain in quarterly profit is fixing GM in the headlights, the war of words is heating […]

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