Toyota reports 35% rise in first-half profit

Toyota posted a 35 per cent rise in operating profit to $4

Toyota posted a 35 per cent rise in operating profit to $4.19 billion for the six months through September, and sales rose 6 per cent to $6.24 billion.

Net profit surged 82 per cent to $2.7 billion. The world's third-largest automaker had been saddled last year with a large extraordinary loss it took to cover a shortfall in its pension funds.

Toyota executive vice-president Mr Ryuji Araki expressed confidence about Toyota's full-year outlook in the United States.

The US market had been a worry after the September 11th attacks, but sales figures have boomed thanks to zero-interest and low-interest financing offered by automakers.

READ MORE

But the outlook for Toyota's stock remains cloudy, despite potential record profit levels this business year and progress in regaining ground after initial share-price volatility following the September 11th attacks.

But, compared to main rival Honda Motor, Toyota's growth was less eye-catching.

Honda, which has dominated the domestic market this year with a slew of minivans and its hot-selling Fit subcompact, reported a 57 per cent rise in first-half operating profit to $2.9 billion, with an operating margin of 9 per cent.

Toyota's operating margin was 7.4 per cent. For the first half, Toyota posted group vehicle sales of 2.69 million units, up 1.4 per cent from the previous year.