JAPAN’S Toyota said today net profit in its first quarter surged 78% as global production rebounded after severe supply disruptions a year ago.

The world’s biggest automaker by sales said net profit in the three months to June was ¥1.31 trillion (RM41.43 billion) on sales of ¥10.55 trillion, up 24.2% from a year ago.

Toyota, including its Lexus brand, sold 2.538 million vehicles worldwide, up 8.4% from a year ago.

The figures beat market expectations, sending the company’s stocks up almost 3% immediately after the announcement.

The company also maintained its annual targets, including net profit of ¥2.58 trillion and sales of ¥38 trillion.

“The sales volume increased in all regions due to productivity improvement efforts promoted with suppliers, in addition to an improvement in the supply and demand situation for semiconductors, which continued for a while,” the company said in a statement.

The yen’s slide and foreign exchange fluctuations added ¥115 billion to Toyota’s operating profit.

A better mix of models, improving sales and price revisions in overseas markets also boosted its earnings, Toyota said.

However, soaring materials prices impacted the company to the tune of ¥230 billion. 

But Toyota said it believed “market conditions, such as those for precious metals, have stabilised compared to last year”. – AFP, August 1, 2023.