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Christopher Bruce2012-05-10 14:58:06

Toyota Expecting Highest Profit in 5 Years Thanks to US

Toyota is currently selling two of every five cars sold in Japan

ToyotaToyotaToyotaJapan, 1937 > present155 models
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is expecting its highest profits in five years thanks to very strong sales in the North America and in China. Toyota forecasts sales in North America alone to be up 25% by the end of the fiscal year 2013. It is expecting to sell 8.7 million cars this year, which is near its sales record of 8.91 million cars in 2008. 

Given these projections, Toyota believes that it will make US$9.5 billion this year compared to about $3.6 billion in income last year. That would make Toyota more profitable than GMGMGMUnited States of America, 1998 > present8 models
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this year if the projections for both companies are correct. 

"U.S. sales are going to be the biggest cash cow for Toyota this year. The U.S. economy has been fairly good," said Koji Endo, an analyst for Advanced Research Japan. 

This year the market for cars in Japan is growing. Toyota has sold 57% more cars than last year because there are government subsidies on buying cars and demand after the tsunami. 

Sales in the US have been up 12% in the last quarter, which is better than FordGMGMUnited States of America, 1998 > present8 models
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, GM, NissanNissanNissanJapan, 1932 > present159 models
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and HondaHondaHondaJapan, 1948 > present102 models
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Sales in China are up 68% to about 82,000 cars. However, GM sold 227,212 cars in China last quarter, which was and increase of 12%. 

Toyota faced sales problems in North America last year due to the tsunami in Japan and floods in Thailand causing sales to drop 7.8%. The value of the US dollar compared to the yen has been falling meaning that Toyota makes less money from selling Japanese-produced models in the US. 

All of these numbers for Toyota are based on estimates and projections, though. For instance, Toyota had a net income of 121 billion yen ($1.5 billion) for the first quarter, but analysts predicted that it would make 140.1 billion yen ($1.76 billion). 

The market for Japanese cars was hard last year. Honda's profit fell 60%, and Nissan's profit fell 7.9%. 

Source: Automotive News

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