Before the market open, the Japan-based automaker posted a profit of 611.7 billion yen, or $5.02 billion, for the six months ended September 30. Profit increased by 14% from the year ago period to reach its highest level for any second quarter, the Wall Street Journal reports.
Toyota reported a record 827.4 billion yen operating profit for the quarter, up from 659.2 billion yen for the fiscal 2015 second quarter. The company maintained its full-year profit forecast for a record 2.25 trillion yen.
TOYOTA INNOVA CRYSTA
However, Toyota lowered its group-wide sales forecast by 150,000 to 10 million vehicles and cut its full-year revenue forecast by 1% to 27.5 trillion yen, according to the Journal.
“Despite decreased vehicle sales and increased expenses to promote the Toyota New Global Architecture and research into cutting-edge technologies, progress in cost reduction and other profit improvement activities, in addition to favourable foreign exchange rates, contributed to the increase in operating income,” managing officer Tetsuya Otake said in a statement.
Separately, The Street Ratings team rates Toyota MOTOR CORP as a Buy with a ratings score of B. The Street Ratings Team has this to say about their recommendation:
We rate TOYOTA MOTOR CORP (TM) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company’s strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, notable return on equity, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: