Toyota posts record profits

Toyota posts record profits

Japanese automaker Toyota became the first Japanese firm to top the 2 trillion yen line in profits. The world’s second largest automaker gained from improved sales in the European and North American markets.

Toyota’s operating profit for the 2006 business year jumped 19.2 percent from the previous year to 2.24 trillion yen.

The company has now become the first Japanese firm to top the 2 trillion yen line in operating profits. Toyota however gave a modest forecast for the current year through next March.

They are now anticipating only a slight increase in profits due to an expected slowdown in North American market growth.

Toyota President Katsuaki Watanabe added in a statement: “Our continuous efforts for growth in the global market are paying off.”

The company added that they saw its car sales fall in Japan and other Asian markets. However, this drop was offset by improved sales in North America and Europe.

In North America itself, Toyota sold 2.94 million cars, up 15.1 percent from the previous year. Their sales in Europe were up 19.8 percent year-on-year to 1.22 million units.