The automaker's revenue for the period rose 60 percent to just under $70 billion, while its overall operating profit was $4.5 billion. Strong U.S. demand for the aging Corolla, redesigned Camry and new Prius models was a large part of the company's success, even as it cut discounts and promotions in the country by 24 percent to $1,849 per vehicle (according to Autodata estimates).
"Toyota's business results for the first quarter were strong but we should keep in mind that the sales surge was aided by domestic subsidies and new cars like the Camry in the U.S.," said Koichi Sugimoto, a Tokyo-based auto analyst at BNP Paribas SA. "For the three quarters left this fiscal year, the biggest concern for Toyota should be currency rate."
Toyota is currently working to shift some vehicle production away from Japan, where the strength of the yen has cut into export profitability. A recent report suggested the automaker could reduce its domestic production by 10 percent or more by 2014.
