Toyota Posts $5.8 Billion Increase in Net Income for First Half of Year

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has reversed a loss through the first half of last year into a significant increase in income for the first half of 2012. The company posted a $5.8 billion (€4.5 billion) increase in net income for the first half of fiscal year 2012. In the same period last year, Toyota made about $1 billion (€800 million) in net income. Whereas this year it has made $6.8 billion (€5.3 billion) in net income. It sold 4.516 million cars in that period, an increase of 1.49 million cars compared to the same period last year. 

Operating income went from a loss of $406 million (€317 million) in the first half of last year to a profit of $8.6 billion (€6.8 billion) in the same period this year. 

Toyota owes some of the increase in income to reducing costs by $2.9 billion (€2.2 billion). However, the weak dollar and euro meant that it lost $747.7 million (€585 million) from its operating income. 

The one other negative for the company is that it revised its projected sales for the full year from 8.8 million cars to 8.75 million cars. It predicts that it will lose sales in China and Europe in the second half of its fiscal year. 

The company predicts that it will have a net income of $9.7 billion (€7.6 billion) for the entire year, and it will have total revenue of $265 billion (€208 billion).

"For the first six months of this financial year, we have seen a significant increase in production in all regions compared to the same period last year when we suffered parts-supply shortages due to the Great East Japan Earthquake.  Our business results on a consolidated basis also show increased profits over the same period last year," said Toyota Vice President Satoshi Ozawa.

Toyota posted vehicle sales increases in every region in which it sells cars including Europe.