Toyota Motor (NYSE:TM) is up 1.83% in pre-market trading Tuesday morning after releasing its 1Q earnings report. The Japanese auto maker's operating profit in the first quarter almost doubled to JPY 1.1 trillion (JPY 1 = $0.6986), marking a significant 94% year-on-year growth. This impressive performance was attributed to higher sales and productivity, as well as the favorable impact of a weaker yen.
"Sales volumes across all regions increased compared to the same period a year earlier due to productivity improvement efforts made together with suppliers," the company said in its earnings announcement.
Bank of America reaffirmed its Buy rating and 12-month price target of JPY 2,900 ($207.79) on the company's stock after the Japanese automaker reconfirmed its full-year FY3/2 guidance with an estimated operating profit of JPY 3T.
Analysts wrote in a note, “1Q results suggest OP is on track to easily beat the market consensus of ¥3.6tn if exchange rates stay at the current level.”
The company sold approximately 2.53 million Toyota and Lexus luxury brand cars in the quarter, marking an impressive 8.4% increase compared to the previous year. Notably, around 34% of these sales comprised hybrids and other electrified vehicles.
Toyota’s performance in Japan stood out with operating profit soaring over two-fold from the previous year, reaching JPY 700.7B. This robust performance accounted for more than 60% of the overall operating profit, primarily driven by a surge in vehicle sales. The availability of semiconductors significantly contributed to this growth, ensuring improved supply for the market.
Chinese business contributed JPY 53.6B to 1Q OP, down 26% YoY mainly due to forex, and JPY 54.3B to equity-method income, down 32% on lower volumes.