On Thursday, Toyota disclosed a Q1 profit surge of 17.00% due to its cost reduction move and a weak yen, which offset sluggish sales and production volume.
The Japan-based automaker stock has closed the session by rising 0.23% to $193.55 apiece.
Furthermore, Toyota’s earnings per share (EPS) rose by $6.58, better than the $5.42 consensus and surpassing its previous $4.76 data.
Additionally, its revenue was boosted to $78.68 billion, topping the analysts’ forecast of $72.49 billion. The data has also exceeded the last quarter’s $71.16 billion.
Meanwhile, Toyota reported that its operating profit for Q1 equated to ¥1.30 trillion ($8.70 billion, which matched the analysts’ expectations.
However, despite struggling to maintain stable production in Tokyo due to certification issues and recalls, its profit success was attributed to the support from its stakeholders.
Moreover, Toyota has faced challenges from the Chinese solid market and a certification scandal. This has impacted the company and its Lexus brand vehicles, reducing sales in Japan.
Meanwhile, presentation materials showed that its consolidated vehicle sales declined by -3.00% in the quarter. However, the share of petrol-electric hybrids in sales reached about two-fifths.
Toyota maintained its forecast of a ¥4.30 trillion ($28.70 billion) profit for the entire year. This data was lower than analysts’ ¥5.30 trillion average ($35.38 trillion) estimate.
Safety Issues Affect Toyota Sales, Sluggish Q1 Output
Toyota’s fiscal 2024 sales momentum slowed amid production disruptions caused by a safety scandal and a mass vehicle recall.
According to reports, upset vehicle output has reached over 100,000 cars due to engine issues, which also challenged the carmaker.
However, Toyota has benefited from its cost reduction effort, and the weak yen has also contributed to the firm’s revenue recovery.
The automaker’s production volumes fell for the fifth consecutive month in June due to a widening safety tests scandal.
Furthermore, the Japanese authorities found irregular certifications for specific models extending beyond the Daihatsu unit. As a result, Toyota and several peers were ordered to cease shipments of the affected models.
