Earnings Beat of the Week: Toyota Nearly Doubled Its Operating Profit

Operating income for Toyota surged 94% from the year-ago quarter to 1.12 trillion yen ($7.89 billion), beating estimates of 945 billion yen ($6.66 billion). Profit growth was driven by rising sales, productivity gains, and currency tailwinds from a weaker yen, which boosted exports of the company’s vehicles. Net income totalled nearly 1.33 trillion yen ($9.37 billion), up 75% from the same quarter last year.1

Toyota sold just under 2.33 million cars in the April-June period, up 15.5% from the year-ago quarter, with sales of electric vehicles (EVs) up close to 30%.

As a result of selling each car meticulously at prices that match the product appeal refined through Toyota’s long-standing ‘making ever-better cars’ initiative, operating income increased, which helped reduce the impact of the sharp rise in materials prices,” the company said in its earnings presentation.