Toyota gained a record breaking profit of 5.2 billion yen due to the company's overseas strategies and the devaluation of the yen during the first fiscal quarter. However, the company's over-all sales are down besides new profit record.
According to The Street, the United States is the company's most important market. The company's performance, specifically its high sales, shows that the US economy slowly recovers from its collapse the past years.
Analyst's forecasts that, for the quarter, the company's average profit will be around 607.5 trillion yen but the company reported a 699 trillion yen gain. The company gained 9.4 percent compared to its sales in 2014.
According to the CNN Money, the Japanese company's Managing Officer Tetsuya Otake said that the exchange rate and the company's effort to reduce production cost helped the company achieve its latest record. He added that low sales and higher expenses pull the company down on the last quarters.
The yen deflated by 17 percent compared to the US dollar. If the yen is weak Japanese products becomes cheaper signaling an increase of sales for the country's manufacturers.
Toyota lost the sales battle to Volkswagen last week. The latter sold 5.04 million vehicles from the month of January to June. Toyota sold 5.02 million during the same time frame.
The new profit record of the company in the quarter shows positive inclination but the company's shares and ADR still is down. Without the yen's deflation the company over all operation gain is still down by 12 percent.
Toyota along with the other brands globally recalled their cars because of faulty airbags. The Takata airbags are feared to explode and send flying particles to the car users.