Japan’s biggest automaker, Toyota Motor Corporation (NYSE: TM), reported that its operating income surged 54% to ¥673.6 billion ($5.96 billion) in third-quarter fiscal 2018 (Apr. 1,2017 through Dec 31, 2017). It also reported net income of ¥970.7 billion ($8.6 billion) in the quarter compared with ¥506.8 billion ($4.7 billion) in the prior-year quarter.
Toyota said on Tuesday, it was on the track for a record profit this year, but executives are not celebrating because the gains came mostly from the currency movements and one-time U.S. tax changes.
The Automotive segment’s net revenues increased from ¥6.45 trillion ($59.2 billion) in the year-ago quarter to ¥6.86 trillion ($60.7 billion) in the reported quarter while operating income increased to ¥569 billion ($5.1 billion) from the year-ago figure of ¥382.7 billion ($3.5 billion).
In term of the Financial Services segment, its net revenues rose to ¥512.5 billion ($4.5 billion) in the quarter under review as compared to ¥476 billion ($4.4 billion) in the prior-year period while operating income surged to ¥82.6 billion ($731 million) from the year-earlier figure of ¥42.6 billion ($390.8 million).
Moreover, all Other businesses’ net segmental revenues rose to ¥381 billion ($3.37 billion) in the quarter under discussion compared with ¥276 billion ($2.5 billion) in the comparable period last year while operating income augmented to ¥24.7 billion ($218.6 million) from the year-ago tally of ¥16.5 billion ($151.4 million).
Toyota recently made its expectations on operating profit of ¥2.2 trillion ($20 billion) for the fiscal year ending in March, a 10% increase over the prior year. However, if it weren’t the fluctuation of the exchange rate, the profit would be slightly lower. “I give us an F” on that measure, said Mr. Kobayashi, CFO of Toyota Corporation.