Toyota Motors reliance on the US market to drive record profits is deepening this year, its latest outlook showed, with strong sales of refurbished SUVs and Camry sedans expected to offset weakness in Thailand and other emerging markets.
Toyota on Tuesday posted 692.7 billion yen ($6.76 billion) in April-June operating profit, up 4.4% year-on-year and its best quarter ever with solid US sales, cost cuts and a weaker yen bolstering profits.
North American operating profit rose 45% to 149.7 billion yen, surpassing Asia excluding Japan, which posted far more modest profit growth of 5.6 percent to 110.3 billion yen.
Conditions in Thailand, India, Brazil and other emerging markets are weak, Managing Officer Koki Konishi told an earnings briefing. But we're trying our best to get an additional 50,000 vehicles out of Japan to offset some of that, and to reach around 2.3 million in the US, he said, referring to Toyota's 2014 calendar year sales targets.
For 2014, the company trimmed its global group-wide sales forecast to 10.22 million vehicles, a reduction of 110,000 vehicles and raised North American sales target while cutting its target for Asia excluding Japan and China.