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Saturday 5 auguSt 2017 BUSINESS
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Toyota’s quarterly profit improves on strong sales

By YURI KAGEYAMA terly sales rose 7 percent to matter. The deal is expect- year profit forecast through fiscal year.
AP Business Writer 7.05 trillion yen ($64 billion). ed to involve a joint-ven- March 2018 to 1.75 trillion Toyota, which has been
TOKYO (AP) — Toyota Mo- Toyota, which makes the ture auto manufacturing yen ($16 billion), higher vying against the Japan-
tor Corp. reported Friday Prius hybrid, Camry sedan plant in the U.S., working than its earlier forecast of France alliance of Nissan-
that its fiscal first quarter and Lexus luxury models, together on green technol- 1.5 trillion yen ($14 billion). Renault, Volkswagen AG of
profit rose 11 percent as sold 2.2 million vehicles for ogy and a capital alliance. Like other Japanese ex- Germany and U.S. manu-
sales improved around the the quarter, an improve- Expenses for marketing and porters, Toyota is enjoying facturer General Motors
world, including in the U.S., ment of 42,000 vehicles investments in cost cutting the benefits of a yen that Co. for the spot of world’s
Europe and Japan. on-year. Toyota and Maz- efforts weighed on Toyota’s has stayed cheaper than No. 1 automaker, stuck
Toyota’s April-June profit of da Motor Corp. are set to quarterly profits, said the previously expected. But to its earlier projection for
613.0 billion yen ($5.6 bil- announce later Friday a company’s senior manag- the revised forecast is still global vehicle sales for the
lion), up from 552.4 billion partnership, according to ing officer, Tetsuya Otake. lower than the 1.8 trillion fiscal year at 10.25 million
yen a year earlier. Quar- a source familiar with the Toyota raised its fiscal full yen earned in the previous vehicles. q

Mazda, Toyota plan $1.6 billion US plant, to partner in EVs

close to parts supply com- shifted by 2021. If not, the
panies. The companies ex- plant will have the flexibility
pect the plant to begin op- to shift to another model,
erations by 2021. according to spokesman
Toyota said it changed its Scott Vazin.
plan to make Corollas at a Toyota plans to acquire
plant in Guanajuato, Mex- a 5.05 percent stake in
ico, now under construc- Mazda, valued at 50 billion
tion, after reassessing the yen ($455 million). Mazda,
market. which makes the Miata
Instead it will produce Ta- roadster, will acquire 50
coma pickups there, Toy- billion yen worth of Toyota
ota President Akio Toyoda shares, the equivalent of a
said. 0.25 percent stake.
President Donald Trump The companies also plan
had criticized Toyota and to work together on various
other automakers for tak- advanced auto technol-
ing auto production and ogy, such as electric ve-
jobs to Mexico, saying ve- hicles, safety features and
hicles for the U.S. market connected cars, as well as
should be built by U.S. work- products that they could
ers. Toyoda denied that supply each other.
Trump’s views influenced In the past, Toyota was not
Toyota Motor Corp. President Akio Toyoda, left, and Mazda Motor Corp. President Masamichi his decision. overly bullish on electric ve-
Kogai, right, bow to each other prior to a press conference in Tokyo Friday, Aug. 4, 2017. Japa- Trump welcomed the an- hicles, which have a limited
nese automakers Toyota Motor Corp. and Mazda Motor Corp. said Friday they plan to spend $1.6 nouncement in a tweet: cruise range.
billion to set up a joint-venture auto manufacturing plant in the U.S. — a move that will create up
to 4,000 jobs. “Toyota & Mazda to build a But recent breakthroughs
(AP Photo/Eugene Hoshiko) new $1.6B plant here in the in batteries allow for longer
U.S.A. and create 4K new travel per charge. Japa-
By TOM KRISHER U.S. — a move that will cre- for the North American American jobs. A great nese rival Nissan Motor Co.
YURI KAGEYAMA ate up to 4,000 jobs, both market. investment in American is allied with Renault SA of
AP Business Writers sides said Friday. Toyota wouldn’t say where manufacturing!” France and Mitsubishi Mo-
TOKYO (AP) — Japanese The plant will have an an- the plant would be built. But Sales of small cars have tors Corp., and is the global
automakers Toyota Motor nual production capacity because the new plant will slumped in the U.S. amid leader in electric vehicles.
Corp. and Mazda Motor of about 300,000 vehicles, build the Corolla, chances steadily low gas prices. Co- Their alliance led world ve-
Corp. plan to spend $1.6 and will produce Toyota are it will be located near rolla sales fell 10 percent hicles sales for the first time
billion to jointly build auto Corollas as well as a new Toyota’s current Corolla through July. But Toyota in the first half of this year.
manufacturing plant in the Mazda crossover vehicle plant in Mississippi to be hopes the market will have q

Teva Pharmaceutical swings to 2Q loss, slashes outlook

NEW YORK (AP) — Shares ter compared with a profit acquisition, but missed the blame for the results. Pe- terly dividend by 75 per-
of Teva Pharmaceutical a year ago. The latest quar- average Street estimate terburg was named the in- cent to 8.5 cents from 34
Industries Inc. slid after ter includes a goodwill im- of $5.72 billion. “All of us at terim chief in February after cents in the first quarter. The
the drugmaker reported it pairment charge of $6.1 Teva understand the frus- Erez Vigodman stepped company will pay the divi-
swung to a second-quarter billion related to its U.S. ge- tration and disappointment down. dend Sept. 14 to sharehold-
loss and slashed its outlook nerics unit. It reported an of our shareholders in light Looking ahead, the com- ers of record Aug. 29.
as competition in the U.S. adjusted profit of $1.02 per of these results,” said inter- pany expects its full-year The stock fell $7.22, or 23
cuts into revenue. share. Analysts polled by im President and CEO Dr. adjusted profit to range percent, to $24.03 in late
The Israel-based generic FactSet expected $1.06 per Yitzhak Peterburg. He said from $4.30 to $4.50 per trading Thursday. Shares
drug maker lost just under share in profit, on average. price erosion and increase share, down from a range have lost more than half
$6.04 billion, or $5.94 per Revenue rose 12.8 percent in generic drug approvals of $4.90 to $5.30 per share. their value in the past
share, in the second quar- to $5.69 billion thanks to an in the U.S. were partly to Teva also slashed its quar- year.q