Toyota, Nissan profits jump on weaker yen
STORY: Japan’s big car makers are reaping the rewards of a weaker yen.
Toyota said Thursday (February 9) that profits jumped by more than a fifth to over $7 billion in the third quarter.
That was far better than analysts expected, and up on last year.
The firm benefited as Japan’s currency plunged to 32-year lows, boosting the value of its overseas earnings when converted back to yen.
Toyota also enjoyed strong sales across all major regions.
North America, its biggest market, did best of all, posting a 16% gain.
However, the company continues to battle the global shortage of chips used in cars.
It says it’s still working to secure a stable supply.
There was a similar story over at rival Nissan.
Its profit surged 155% over the period.
Besides the weaker yen, it also benefited from better control of costs.
That took operating profit for the period to just over $1 billion, almost a third up on analyst forecasts.
The numbers come days after the firm set out details of its revamped alliance with partner Renault.
As part of the deal, Nissan will take a stake of up to 15% in the French firm’s new electric vehicle unit.