Saturday, November 07, 2009

Toyota Finally Sees Profit and Reshapes the Sales Forecast

World’s largest automaker Toyota has seen a quarterly profit of $242 million during the July-September quarter of the current fiscal year. The Japanese car maker marked profit following losses in three previous quarters in a row. No doubt, the news of profit has come a big relief that the company has again returned in profit. Due to global economic recession, global auto industry has stumbled over the last one or two years. Now that the recession is almost over, there are signs of recovery seen in the recent quarter.

Toyota’s $242 million profit in the last quarter may not be very promising compared to the profit the company made during the same period of last year. In fact, Toyota’s profit for the July-September quarter fell by 84%. Still, it is good because the company faced only losses in previous three quarters. Other automakers like Honda and Nissan have also reported of more than expected profit in the last quarter. Due to the last quarter’s sales surge, Toyota is going to increase its yearly sales forecast now. However, it is also true that Toyota has not yet fully recovered in the recession-hit industry and it seems that the company would take time to make a strong turnaround.

Related article:

Los Angles Times