TOKYO - Toyota Motor Corp. reported a surprise profit yesterday and cut its projected red ink for the year by half, adding to growing evidence that carmakers are starting to recover from the deepest industry downturn in years.
Although far from a full-fledged turnaround, Toyota’s results showed the healing effects of government stimulus measures to spur sales of environmentally friendly cars and other vehicles, as well as soaring demand in emerging markets like China. Rivals Honda Motor Co. and Nissan Motor Co. have also issued healthier reports and outlooks recently.
For the July-September quarter, Toyota, the world’s largest car company, posted better-than-expected net income of $242 million after three straight losing quarters, defying some expectations of another loss.
That marked an 84 percent tumble from the same quarter a year earlier, but was still one of the clearest signs yet Toyota is rebounding from its biggest loss ever during the last fiscal year.
Especially positive were gains in China, where Toyota vehicle sales last quarter surged to a record at more than 204,000 vehicles, up 39 percent from the same period the previous year. China’s auto market is on track to become the world’s biggest, replacing the US market, this year.
Toyota raised its sales forecasts for the fiscal year through March 2010 to 7.03 million vehicles, from 6.6 million. It also expected a smaller loss for the fiscal year of $2.2 billion - less than half the $5 billion loss it predicted earlier.
Executive vice president Yoichiro Ichimaru said Toyota made good progress on emergency efforts to combat its crisis by cutting costs, but acknowledged global uncertainties remained.
On Wednesday, Toyota pulled out of expensive but glamorous Formula One racing, acknowledging it has to focus on its core car business.
In the United States, it faces an investigation into problem floor mats, suspected of jamming the gas pedal and possibly causing crashes. A recall would affect 3.8 million vehicles.
