Toyota Surprises With Profit, Boosts Forecast

YURI KAGEYAMA

TOKYO (AP) — Toyota Motor Corp. reported a surprise profit Thursday and cut its projected red ink for the year by half, adding to growing evidence that carmakers are starting to recover from the deepest industry downturn in years.

Although far from a full-fledged turnaround, Toyota's results showed the healing effects of government stimulus measures to spur sales of environmentally friendly cars and other vehicles, as well as soaring demand in emerging markets like China. Rivals Honda Motor Co. and Nissan Motor Co. have also issued healthier reports and outlooks recently.

For the July-September quarter Toyota, the world's largest car company, posted better-than-expected net income of 21.8 billion yen ($242 million) after three straight losing quarters, defying some expectations of another loss.

That marked an 84 percent tumble from the 139.8 billion yen the company earned in the same quarter a year ago, but was still one of the clearest signs yet Toyota was rebounding from its biggest loss ever during the last fiscal year.

Especially positive were gains in China, where Toyota vehicle sales last quarter surged to a record at more than 204,000 vehicles, up 39 percent from the same period the previous year. China's auto market is on track to become the world's biggest, replacing the U.S., this year.