Toyota (NYSE:TM) released its FY2014 second-quarter earnings early Wednesday and its quarterly profits jumped 70%. One of the big reasons for the jump in profits is that Toyota remains the most export-reliant among Japan's major automakers, and the company significantly benefited from a weakening yen, which boosts profits as money made overseas is converted back into yen.
For the first half of Toyota's fiscal year 2014, the company recorded net revenues of 12.53 trillion yen, an impressive 15% increase compared to the same time period last fiscal year. Operating income surged from 693.7 billion yen to 1.25 trillion yen. Net income followed the trend as well, increasing from 548.2 billion yen to 1 trillion yen.
Toyota expects its profits to continue the drive higher and raised its annual profit forecast to $16.95 billion, or 1.67 trillion yen, in net profit for its fiscal year ending in March 2014. That's a significant improvement from its previous forecast of 1.48 trillion yen. Those figures are quickly approaching its record high net profit of 1.72 trillion yen that Toyota recorded just before the financial collapse in 2008 and ensuing plummeting of vehicle sales.
In a press release, TMC Executive Vice President Nobuyori Kodaira commented on the results: "In addition to the impact of the weaker yen, operating income increased due to our efforts with our suppliers and distributors for profit improvement through cost reduction and marketing activities, such as enhancement of the model mix."