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Toyota has trumped market estimates with its best quarterly profit in two years. It also lifted its cautious forecast, despite a sluggish US recovery and a stronger yen. Toyota joins rival automakers in Ford and Hyundai which have also posted strong, forecast-beating quarterly results.
From April to June, the carmaker reported an operating profit of 211 billion yen thanks to a sharp rise in vehicle sales. It was a swing from losses of 195 billion yen a year ago. Toyota's now forecasting operating profits of 330 billion yen in the fiscal year to March 31, 2011. But in the coming quarters, Toyota is set to get the double blow of crumbling domestic sales and a stronger yen.
After the financial crisis hampered car demand globally, the world's largest automaker has been plagued with excess production capacity, putting pressure on margins. Toyota's recall of more than 10 million vehicles compounded those woes, costing the company billions of dollars and tarnishing its image.
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