Toyota Profit More Than Doubles on Strong Sales and Cheap Yen

Toyota reported a significant increase in profit for its first fiscal quarter, largely due to a favorable exchange rate and solid car sales. The Japanese automaker's net profit rose to 1.48 trillion yen ($9.4 billion) in the April-June period, nearly doubling from 841 billion yen during the same quarter last year.

The company's quarterly sales increased by 10% year on year to 13.5 trillion yen ($85 billion). A cheap yen has boosted the value of overseas earnings for Japan's exporters like Toyota Motor Corp., with the U.S. dollar trading at about 160 yen during the fiscal first quarter.

Chief Officer Takanori Azuma attributed the strong sales performance to demand remaining strong for Toyota hybrids in various global markets, including the U.S., where the Camry mid-size sedan and RAV4 compact sport utility vehicle are selling briskly. The company plans to boost hybrid and hybrid battery production through 2030.

However, Toyota also faces challenges such as the recent political instability in the Middle East, which has weighed on Japanese automakers relying heavily on shipping through the Strait of Hormuz. The company is working on finding alternative routes.