Toyota Motor Corp. posted profits of $2.2 billion during the first quarter of 2010, according to a report from the company on Wednesday. The Japanese automaker said that their sales went up 27 percent from April to June, from $44.6 billion to $56.7 billion.
Even though the company had to recall some 10 million cars this year, cost-cutting and marketing helped the company boost its revenues. More consumers in the Asian market purchased Toyota vehicles, the company said.
During the first quarter of 2009, the company posted a loss more than $900 million, partially due to their image taking a hit over the recalls and partially due to the impact of the global economic recession.
However, a weak yen bolstered sales in the United States, where most Toyota cars are sold, as it drove down the cost of the vehicles in overseas markets.
“Due to an increase in vehicle sales and a large decrease in the costs related to loan losses and residual losses in Financial Services, operating income improved substantially on last year,” said Toyota Senior Managing Director Takahiko Ijichi in a statement.
After the higher-than-expected earnings, Toyota, the world’s largest car manufacturer, will raise its forecast for the year until March 31, 2011. Toyota Prius hybrid cars are displayed at the Toyota of Hollywood dealership on August 4, 2010 in Hollywood, California as you can see in the picture made by Kevork Djansezian/Getty.
The company expects they will sell 7.38 million units and earn $4 billion globally instead of 7.29 million units.