Toyota said its fiscal first-quarter profit nearly doubled, even though it sold fewer vehicles during the period. The main driver was the weak Japanese yen, which boosted the value of earnings from overseas when converted back into Japan’s currency.
According to the company’s latest update, solid demand in the United States and India also helped support the quarter. That combination of steady buying in key markets and favorable exchange rates outweighed the decline in overall vehicle sales.
The currency effect was especially significant. The weak yen added about $2.2 billion to Toyota’s quarterly profit, highlighting how exchange rates can have a major impact on results for global automakers with large international operations.
Even with the strong start to the fiscal year, Toyota is still forecasting a drop in profit for the full year. That suggests the company does not expect the first-quarter boost from currency moves and regional demand to fully define the rest of the year.
