Toyota Motor Corporation (TM) announced results for the third quarter of its fiscal year 2013 (3QFY13, which ended December 31, 2013). The Japanese automaker reported strong quarterly earnings and revenues that largely met consensus expectations, while stating that it expects full year results to come in higher-than-expected.
Net profit for the world’s largest automaker by sales rose to 525.4 billion yen ($5.2 billion) in the latest quarter, up from 99.1 billion yen in 3QFY12. Revenues for the third quarter increased 24% to 6.59 trillion yen ($65 billion).
Toyota also raised its full year guidance for net profit, which it now estimates to come in around 1.9 trillion yen ($18.8 billion) for FY13 on the back of a strong year for auto sales, during which global auto demand rose 8% to reach pre-recession levels. The management’s new guidance is up from earlier estimates of 1.67 trillion yen, and is also higher than the Street consensus, which is 1.8 trillion yen.
The company expects revenues in FY13 to be around 25.5 trillion yen (500 billion higher than earlier estimates) and is projecting its global unit sales to touch 9.1 million for the full year.
Toyota’s revenues from exports have been boosted by a weakening yen, which shed over 12% of its value in 2013.
Ever since it was hit by stumbling sales during the recession, Toyota has actively worked towards streamlining its extensive supply chain, opening up cheaper manufacturing locations, and ramping up sales of its premium Lexus brand, with much success.
The automaker has now made its way to profitability, after suffering from production cuts in the wake of the 2011 earthquakes back home in Japan.
However, industry experts are advising caution going forward. Automakers have recently seen a slowdown in the robust growth rates seen in 2013, and they attribute this primarily to extreme weather conditions.
Toyota was one of the automakers that reported year-over-year (YoY) declines in US car sales for the month of January, with sales falling 7% YoY during the month.
Shares of Toyota are down 2.4% in pre-market trading on the New York Stock Exchange (NYSE).