Toyota Motor Corp. led the charge, posting a percent jump in operating profit in the July-September period, despite output cutbacks and stagnant sales. Even as supply chain woes continue, Toyota is forecasting near-record-level profits and revenue this fiscal year.
In Toyota’s calculus, the home currency has depreciated 4 percent against the U.S. dollar and 5 percent against the euro since last year. At Toyota, exchange rates lifted operating profit by ¥115 billion ($1.03 billion) in the three months to Sept. 30.
The stellar results in Toyota’s fiscal second quarter were also helped by reduced spending on spiffs and R&D expenses — even though global retail sales dipped 0.5 percent to 2.51 million vehicles.
Toyota was not alone in cashing in on a foreign-exchange windfall.
Mitsubishi Motors Corp., rebounding from a full-year loss, bounced back to profitability in the July-September period with a big bump from foreign exchange. The gain added ¥9 billion ($80.6 million) to help deliver Mitsubishi’s ¥14.6 billion ($130.8 million) quarterly operating profit. Without that forex impact, Mitsubishi’s profit would have been down by more than half.
Today, the Japanese yen is trading at its lowest against the dollar since late 2018. The greenback is gaining against the yen amid rising expectations that the U.S. will begin to tighten monetary policy and adjust interest rates, as American policymakers grapple with burgeoning inflation.
