Toyota Motor Company saw its profits rise 94 percent year-over-year last quarter to $5.5 billion worldwide, on global revenue of about $63 billion. The company attributed its success both to the changing Yen exchange rate and to strong U.S. sales.
Within North America, Toyota profits sank about $352 million year-over-year in the first quarter to $832 million. That decline is mostly due to Toyota losing money on interest rate swaps; Toyota North American sales actually increased by 3.8 percent in the first quarter, compared to the first quarter of 2012. Ignoring the interest rate losses, Toyota says North American profits actually rose by about $79 million. Within the U.S. market, Toyota Motor Company sales are up 7.5 percent year-over-year through the first seven months of 2013.
Owing to the strong financial results for this quarter, Toyota has revised its annual profit forecast up by eight percent to $14.8 billion. That would mark Toyota's highest annual profit in six years. The company also boosted its annual sales goal from 9.94 million vehicles to 10.12 million vehicles. Toyota sold 9.75 million vehicles worldwide in 2012.
Despite positive results in most regions, Toyota struggled in Europe and Asia. Quarterly sales in Europe fell 8.5 percent compared to 2012, while in Asia vehicle sales dropped 6.0 percent.
Because the value of the Yen has fallen against the Dollar this year, it is reportedly now more profitable for Toyota to export vehicles from Japan. Last year, the automaker struggled to make money as the highly valued Yen meant Toyota made smaller profits on exported models.
Sources: Toyota, Automotive News