Even as Toyota (NYSE:TM) has been hammered with vehicle recalls, the company somehow reported a strong Q2 profit. Imagine what the profit would have been without the recalls… Well, unless they are cooking the books…
Toyota reported July-September profit of 98.7 billion yen ($1.2 billion) on Friday, up dramatically from 21.8 billion yen profit a year earlier but lower than analysts expected. Quarterly sales rose 5.8 percent to 4.807 trillion yen ($59.5 billion).
Toyota Motor Corp. is the only major automaker whose U.S. sales have been sluggish despite a recent onslaught of incentives that have boosted other automakers' results -- underlining how its once sterling image continues to be tarnished in that crucial market.
Like other Japanese exporters, Toyota is also fighting damage from a strong yen that erodes the value of overseas earnings.
The world's top automaker by vehicle sales raised its profit forecast for the year through March 2011, albeit modestly, to 350 billion yen ($4.3 billion) from an earlier forecast for 340 billion yen ($4.2 billion) profit.
That would mark a 67 percent rebound from the previous year, when the maker of the Prius hybrid and the Camry sedan was hit hard by the recall woes. But that's a shadow of what it used to rake in during its heyday. (Source - AP)