Toyota drives to record result

JAPANESE vehicle maker Toyota has revealed profits up more than 80% to a record 291bn yen (£1.6bn) in the six months to end-September as a weaker yen overcame the impact of the slowing US economy.

Sales rose 6% to 6.83 trillion yen as the company's exports of light trucks and Lexus cars held up in the key US market, which accounts for 80% of Toyota's output. That translated into a dramatic increase in profits as the average value of the yen over the period was down to 122 against the dollar from 107 in the same period last year.

The figure was also boosted because there were no provisions on the company's pension fund this time. Such provisions wiped billions of yen off last year's figures.

Analysts say Toyota is on track for a record full-year profit of about a trillion yen, making it the first Japanese company to break that barrier.

Although sales fell in Japan, US sales benefited from the company's declaration of war on manufacturers who have been enticing buyers with zero-interest financing schemes.

Despite growing unemployment and the grim economic outlook, US car sales have been running at record highs as the major companies slashed the cost of buying.