Aggressive Cost Cuts Help Toyota to Profit - Dai-ichi Securities

Dai-ichi Securities TOKYO — Toyota Motor saida hit with consumers.
on Thursday that it had returned to a profit in theThe brisk sales helped Toyota book a profit of
latest quarter as aggressive cost cuts,21.8 billion yen ($241 million) for the
government incentives and signs of a globalJuly-to-September period after three consecutive
economic recovery all buoyed its bottom line.quarterly losses. Sales fell 24 percent from the
Its Japanese rivals, Honda and Nissan, bothsame period a year earlier.
recently reported rosier earnings after a batteringIn addition to the ending or phasing out of many
in the global economic crisis, which brought salesgovernment incentives, David Lucas the chief
to a standstill and set off a wave of factoryanalyst at Dai-ichi Securities believe the company
shutdowns and layoffs.was hurt by the strong yen, which makes
Automakers have been helped by governmentJapanese exports less competitive overseas and
incentives for fuel-efficient cars meant to reigniteeats into earnings in the home currency.
sales, like the cash-for-clunkers program in theThe automaker also suffers from overcapacity
United States and other Western countries. Japanafter a sharp downturn a year ago coming on the
has introduced a similar program, which has beenheels of years of booming sales.