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Saturday, May 13, 2006

Toyota’s Profit raise in fourth Quarter

Written by: S.M.Mehdi Hassan
I have been writing news for the last few days for Toyota and now this type of news does not surprise me any more. Toyota, world’s tenth largest automobile producing company has observed a 53% rise in their fourth quarterly profit (January- March). According to Reuters’s report the operating profit for the fourth quarter is 586.70 billion yen and the market estimate was 493.7 billion yen. Net profit increased by 39 percent and revenue 17.8 percent. The companies main advantage is that it can produce cars that are user friendly and saves money. At present, the company boasts of a capital worth 217 billion dollar, higher than the South African economy. The company has decided to increase their Research and Development spending to launch their third generation Hybrid cars. The company also forecasted its next year operating profit, which will end in March 2007. It expects a 1.2 percent rise in operating profit. America is Toyota’s biggest market and last month it outsold Daimler Chrysler. Not only the Daimler Chrysler, Ford and General Motors also incurred lose which resulted into job cuts and shutting down of plants. Toyota has decided to produce 8.45 million vehicles including trucks and cars this year.

Related article:
Reuters

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