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Tokyo - Toyota Motor on Friday reported a net profit of ¥289.16bn for the fiscal first half, compared with a net loss of nearly ¥56bn in the same period a year earlier.
The world's largest automaker also raised its annual net profit forecast to ¥350bn from ¥340bn predicted in August - despite battling a strong yen and the effects of a safety recall crisis earlier this year.
At an operating level, Toyota returned to a ¥323.12bn profit from a loss of ¥136.86bn in the same period last year, when the sector was in a deep slump, attributing the rebound to marketing and cost-cutting.
For the second fiscal quarter to September, the automaker posted a net profit of ¥98.7bn, up from ¥21.8bn a year earlier.
Profit "improved significantly despite the substantial negative impact from the strong yen," said Toyota's executive vice president Satoshi Ozawa, as Toyota reported improved operating profits in all global regions.
The Japanese currency has been trading at 15-year-highs against the dollar, hurting Japanese exporters such as Toyota by making their products relatively more expensive abroad and cutting into repatriated earnings.
The currency issue is a threat for Toyota, which will also have to adapt to the end of green-car subsidies in Japan that had boosted sales, especially of its Prius hybrid, since the global economic downturn.
Ozawa pointed at the continued "very tough business environment, characterized by the radically and seriously appreciated yen in recent months, the risk of slowdown in demand recovery in the United States and Europe and falling demand following the end of the eco-car subsidies in Japan.
"Nevertheless, we will do our utmost... to deliver as many vehicles as possible to our customers while continuing to improve our profit structure through further fixed cost and variable cost reduction activities."
In its home market, Toyota's Prius gas-electric hybrid hatchback stayed the top selling car for a 17th month in a row in October, according to Japanese industry bodies, Kyodo News agency reported.
The hybrid sold 21 769 units, despite the end of the subsidies, in part due to a large backlog of orders, the Japan Automobile Dealers Association and the Japan Mini Vehicle Association said.
