Toyota Motors, the world's most profitable car maker, posted a 2.7 per cent rise in quarterly operating profit and raised its full-year forecasts on the back of a weaker yen, stronger sales and cost cuts.
Toyota, valued at $200 billion - about 10 times the market capitalisation of General Motors - is on its way to a seventh straight year of record earnings powered by a rapid push into China, Russia and other developing markets with popular models such as the Camry sedan.
Toyota's rising profits contrast with the troubles facing Detroit's GM and Ford Motors, which are mired in losses from restructuring costs and declining sales at home.
GM will book a $39 billion charge when it reports third quarter results later today, triggered by cumulative losses over the past three years.
Toyota said its earnings engine remained robust, fuelled by a solid rise in vehicle sales rather than an artificial boost from a soft yen, although year-on-year profit growth slowed in the latest quarter from a 32 per cent jump in the first quarter.
"Our profit levels in North America and Japan remain high, while we're growing faster than rivals in emerging markets," Senior Managing Director Takeshi Suzuki told a news conference.
Cautious exchange rate assumptions for the second half, at 110 yen to the dollar and 155 yen to the euro, meant the higher profit projections could be achieved with room to spare, he added.
The yen is now trading around 114 to the dollar and 166 to the euro and a weaker yen translates into higher reported profits. Backed by its brisk sales, Toyota nudged up its global sales forecast by 40,000 cars to 8.93 million vehicles and its operating profit forecast by 2 per cent to 2.3 trillion yen for the year to March.
Its net profit forecast rose by 3 percent to 1.7 trillion yen but the forecasts still lag the consensus among analysts for an operating profit of 2.5 trillion yen and net profit of 1.8 trillion yen.