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Welcometo>> Automotive News, Toyota Car>> Toyota quarterly profit 1.2 dollar bln as sales recover 11 May 2010

Toyota quarterly profit 1.2 dollar bln as sales recover

Toyota sailed back into profit in the last quarter of the world as a cost-cutting and installing car manufacturers rose on the recovery of global car sales while struggling to save its reputation for quality.

But top executives from manufacturers and analysts alike say that Toyota is still far from fully recovered while another potential blow to the image of weaving after the U.S. federal government launched a fresh investigation into the steering recall.

Toyota Motor Corp. said Tuesday that the January-March profit reached ¥ 112.000.000.000 ($ 1.2 billion) compared with 766.000.000.000 yen loss the previous year.

Quarterly revenue jumped 5280000000000 yen ($ 57 billion) from 3.54 trillion yen the previous year, when buying cars and other vehicles slumped amid the global financial crisis.

Toyota, which makes the Camry sedan and Prius hybrid, is a better forecasting results for the fiscal year until March 2011, the projected annual profit rose 48 percent to 310 billion yen ($ 3.3 billion).

Is the largest carmaker in the world can continue its recovery is situated at the top to save his reputation after a recall of more than 8 million cars around the world to the gas pedal is broken, there are software problems braking, mats are damaged and other disabilities.

On Monday, the U.S. National Highway Traffic Safety Administration said they do a new investigation into the Toyota to see if it had broken down in mind to direct defects in the year 2005 in the United States was made considering for similar problems in Japan in 2004.

Toyota has paid a maximum penalty of $ 16.4 million for dallying on the recall for the problem of acceleration, and NHTSA can be slapped with fines up to a longer amount of rudder problems.

United States Secretary of Transportation Ray LaHood, who is in Japan to visit Toyota and examine high-speed train, said Monday that additional fines may be imposed against Toyota.

“There is still a long road before full recovery,” said author Masaaki Sato, who has written a book about the history of Toyota. “It almost did not succeed to get back into the black.”

Sato said the latest results show Toyota is weakened compared to its heyday several years ago when corporate profits have been growing rapidly, the company has been topping the model of consumer surveys and annual global sales approaching 10 million vehicles.

President Akio Toyoda, who is the grandson of the founder of the producer, said Tuesday the company was working with the U.S. investigation, but did not elaborate.

Toyoda, the president appointed in June last year, acknowledged that his task is similar to steering a ship in a storm. He said the ship was sailing toward what looks like the sky is clear because the employees work together “in one spirit.”

“I feel that I am now at last stood at the starting point with new revenue,” he told reporters at Toyota’s Tokyo office. “This year will mark a new beginning for Toyota.”

Toyota’s 29 top executives gave up their bonuses due to global fallout from the collapse of investment bank Lehman Brothers sent the car into the red.

Toyoda said that it will continue and, from top executives, 11 members of the board also will refund a portion of their monthly salary to be responsible for the chaos remembered, though he did not give figures.

Last results appear to indicate Toyota has managed to contain the damage from a series of recall – at least, so far.

Toyota officials said the company spent 100 billion yen on measures related to memory, and lose between 70 billion yen and 80 billion yen in sales during the year ended March 31.

They are clear about the damage for the current year, except to say Toyota 80000000000 yen forecast expenditure for incentives to increase sales.

Although sales have been held in recent months, many of which came from an unprecedented incentives to lure customers in North America and the growth of fast-growing Asian countries like China.

For the fiscal year through March 31 Toyota posted a 209 billion yen (2.3 billion U.S. dollars) profit, a dramatic reversal from the loss of 437 billion in the previous fiscal year, the worst annual car red ink that was founded in 1937.

The annual results are much better than analysts expected and be cautious of Toyota, the internal estimate for 80 billion yen profit.

Global sales for the year ended March 31 reached 7.24 million vehicles, down 4 percent from a year earlier. Toyota expects that to increase to 7.29 million for the current fiscal year.

Toyota’s revenue forecast to increase 1.3 percent to become 19.2 trillion yen for the year to March 2011, from 18.95 trillion yen for the year ended March 31. It marked decline 7.7 percent from a year earlier.

Toyota says it has accounted for haulage costs associated with forecast for the current fiscal year.

“To achieve the recovery gains further, what we need to do is to offer high quality, affordable vehicles,” Toyoda said, while stressing that the difficult times are likely to continue.

He said that Toyota will focus on green vehicles such as hybrids and emerging markets, including China, to the next stage of growth.

Honda Motor Co. have also seen the recovery, with profits jumped 96 percent to 268.4 billion yen ($ 2.9 billion) for the year ended March 31. Japan no. Two cars is a forecast 340 billion yen (3.7 U.S. dollars billion) profit for the year to March 2011. Nissan Motor Co. reports earnings Wednesday.

Toyota’s share price slipped 0.7 percent to 3495 yen in Tokyo.

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