Toyota’s global profits records 19 percent growth

Toyota Motor Corp. posted a 19 percent jump in quarterly profit, its best quarterly performance in two-and-a-half years, on the back of higher sales and cost reductions in Asia. Operating profit was 682.6 billion yen ($6.11 billion) for April-June, versus 574.3 billion yen a year earlier.

Global retail vehicle sales rose 1 percent to 2.6 million units in the quarter, boosted by an 8.5 percent lift in Asia. For the first six months, demand for the remodeled Camry helped to increase Chinese sales by 5.4 percent, while Thai sales jumped 26 percent. Together, sales in those countries helped drive a 40.2 percent rise in first-quarter profit in Asia.

In North America which is Toyota’s biggest regional market, sales rose 3.2 percent due to a rise in demand for its pick-ups, including the Tacoma and Tundra. Still, profit in the region fell 29 percent as sales incentives continued to weigh.

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In Japan, sales fell 6.3 percent, but profitability rose 24 percent due to cost reductions and an increase in vehicles made in Japan and exported overseas.

The automaker maintained its full-year profit forecast to slip 4.2 percent to 2.3 trillion yen, though it is now factoring in one U.S. dollar being worth 106 yen, from an earlier forecast of 105 yen. Overall, it still anticipates a stronger yen to offset the benefits of cost cutting and record-high global vehicle sales.

Meanwhile, Toyota is joining other carmakers in preparing for challenges ahead as sedan sales cool in the U.S. and the country’s trade war with China threatens to boost prices and weigh on demand.