Toyota (NYSE: TM) posted a 2.9% increase in operating profit on cost cuts and a stronger dollar. Sales success in areas outside the U.S., including Russia and China, are likely to give the Japanese company its seventh straight year of record profits. Toyota sales in the U.S. and Japan were down a bit due to weak overall car sales in both countries.
According to Reuters, "Second-quarter net profit grew 11.1 percent to 451 billion yen, as stronger sales in Europe, Asia and other markets eclipsed the slide in the United States and Japan, Toyota's two biggest markets. Revenue rose 11.2 percent to 6.49 trillion yen."
The earnings results serve as a reminder that Toyota is still, by far, the world's strongest car company. Its recent stock price drop, recalls, and downgrade in the Consumer Reports quality survey led the market to think that the company's dominance of its industry might start to fade. The firm's latest earnings report is likely to mute that kind of talk.
Toyota is doing well because it has been adroit at entering new markets with its current cars, like the Camry. These models are inexpensive, use less gas than most, and are still highly reliable. They are products that depend very little on trying to change tastes in each market.
The company has also been ahead of the trend with alternative energy cars like the Prius, which has become a very big seller for Toyota.
Toyota may be having a bad turn, but it is still a number of steps ahead of the competition.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
11-07-2007 @ 10:40AM
Whicket williams said...
Toyota makes the best cars for the money in the world. They have for years, that is why they are number one. The american carmakers have insisted that a car should be functionaly obsolete at 100,000 miles, which is when a toyota is just getting broken in good. They have driven themselves into last place deliberatly. The mindset of American is such that they are doomed to lose everything if they do not take globalization seriously. They did it to rob the american citizen, and bit off more than they can chew, and now face real cometition word wide. They better stop being lazy and greedy and switch to nitrogen before china does!
11-07-2007 @ 11:33AM
greg said...
Your comment is hog wash.
I was just in a accident with a Toyota and yes they build fuel efficient cars. No they are not safe.
The Toyota I hit 2008 model the back was ripped off totaly. It was the ladys fault for backing out.
IF you want a car that will Kill you and the J will do that .
Then buy a Toyota.
All my ford cars have lasted well over 250k miles.
Who writes these articles ...???
My Toyota cars I have owned have not been good and unsafe to say the least.
The present of toyota said we might have won the war but they will win the war after the war.
Buying a toyota is not only harmfull for you but bad for the USA . Why do you think we are in such trouble.
11-08-2007 @ 10:21AM
Josh said...
#1 comment - I don't think that the Big Three are trying to rob the American citizen but yes, they do run off of a 2-5 year business model with their vehicles. That is why so many of their sales is lease customers looking for an amazing payment that only keeps them stuck in that car or that brand with no hopes of ever OWNING a car. Another part of the problem is that they have consistently downgraded the value of their own vehicles by putting ridiculous rebates on them year after year. This simply ruins their value on a used car market. The whole business model and management mentality is wrong with the Big Three which is why the topic of this discussion is that Toyota STILL, despite bad publicity, is the leader.
Comment #2 - You sound absolutely ridiculous and very much like you only speak of your own bad experience. Toyota simply makes the best cars in the WORLD, hands down. Numbers do not lie as we see above and typically sources like Consumers Report, MotorTrend, JD Powers and the likes, do not lie either. These sources and publications have touted many Toyotas as the safest cars built. Are cars from the Big Three BAD, not at all, and no one is saying that so don't take it personal.
Also, as far as saying that buying a Toyota is bad for our country, I would suggest you take a look at what they've done in just the past year or two. Over 3/4 of their production is in North America and they have CREATED more jobs than the Big Three have in the past couple years.
If you want a real story of what Toyota has done for the US, talk face-to-face with a former UAW worker that Toyota now employs. Hearing the horror stories of how they were treated vs. the pride they now take in their work is amazing.
Thats all I have to say.
11-12-2007 @ 2:03PM
jpdr1100 said...
For Greg: your comments are not only unfounded in facts, they read like an agenda, not a comment. If you are so opposed to Toyota selling here, why on earth would you of all people be buying their cars? And yet you expect us to believe you have first-hand knowledge in their ownership.
BS.
Preaching your biased beliefs is fine. We all do it. Some just do it more intelligently than others.