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Toyota's first quarter profit rises 10% | Toyota's first quarter profit rises 10% |
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Japanese carmaker Toyota has reported a 10% increase in profits for the first quarter of its fiscal year, helped by the weak yen and cost cuts. | |
For the period from April to June, the company said net income rose to 646.3bn yen (£3.34bn, $5,2bn) from 587.7bn yen a year earlier. | |
Toyota also raised its sales forecast slightly for the full fiscal year. | |
Last week it emerged that Toyota was overtaken by VW as the world's largest carmaker in the first half od the year. | |
US recovery | |
In a statement, Toyota managing officer Tetsuya Otake said: "Favourable foreign exchange rates and cost reduction efforts were main positive factors, while decreasing vehicle sales and increased expenses to support initiatives for enhancing competitiveness were negative factors." | |
Toyota's sales in Japan were slightly lower, but sales in North America rose while Europe remained almost flat. | |
On the back of a weaker yen, Japanese car exports have benefitted from the US economy's recovery in the past months. | |
In Europe, overall economic conditions also continued to recover though there still is concern over the impact of the Greek debt crisis. | |
'Two-pronged approach' | |
Sales in Asia, South America Africa and the Middle East saw the biggest falls, with emerging markets affected by a slowdown in economic growth. | |
In China, the carmaker has seen increased competition from local car makers, Vivek Vaidya, an auto analyst with consultancy Frost & Sullivan, told the BBC. | |
"China is always the market where you will have significant competition from the lower end, from cheaper alternatives," he said. | |
"So Toyota is using a two-pronged approach - their technology and their quality - to try and increase their market share in China in the future." | |
In their outlook for the rest of the fiscal year, Toyota said it revised its vehicle sales forecast from 8.9 million to 8.95 million units. |