Toyota reports record quarterly profit

TOKYO (AP) — Toyota reported Aug. 1 that its April-June profit rose 1.7%, boosted by a favorable exchange rate, as vehicle sales grew around the world despite a certification scandal that halted production in Japan for several months.

Fiscal first-quarter profit at Japan’s top automaker rose to $9 billion, a record profit for that period, from $8.9 billion the same period a year ago. Quarterly sales edged up 12% to $79 billion.

A weak yen, which boosts the value of overseas profits for Japanese exporters, also helped. The U.S. dollar has been trading at above 160 yen in recent weeks, although it slid below 150 yen after the Bank of Japan raised a key interest rate.

The currency fluctuations added $2.5 billion in operating profit for the period, according to Toyota Motor Corp. Cost reduction efforts added $367 million in operating profit.

Production in Japan was halted on some auto models after the government found irregularities in documentation for certification approval.

Toyota has apologized for the misconduct and said efforts were underway to resume production.

Demand for Toyota’s popular hybrid models remained especially strong. Hybrid models deliver fuel efficiency by switching back and forth between an electric motor and gas engine.

But Toyota sold fewer vehicles around the world during the latest quarter at 2.25 million vehicles, down from 2.3 million vehicles last year.

Toyota expects to sell 9.5 million vehicles around the world for the full fiscal year. When including group companies like Daihatsu Motor Co., which makes small models, and truck maker Hino Motors, annual global sales are expected to hit nearly 11 million vehicles, according to Toyota.

Toyota stuck to its profit forecast for the full fiscal year through March 2025 at $24 billion, down nearly 28% from the previous fiscal year.

Recently, Japanese rival Nissan Motor Co. reported a 73% decline in quarterly profit, although sales edged up 3%. Honda Motor Co. reports earnings next.