Page 25 - Aruba Today

BUSINESS A25
Friday 6 November 2015

Toyota quarterly profit rises to $5 billion on weak yen

YURI KAGEYAMA exchange rate. The profit value of its sales increased with 101-102 for much of 10.17 million vehicles for the
AP Business Writer was up from 539 billion yen 8 percent to 7.1 trillion yen the same quarter last year. fiscal year ended March
TOKYO (AP) — Toyota’s the previous year, but a ($58.5 billion), showing the Toyota, which makes the 2015. Toyota, the world’s
quarterly profit rose 13.5 little short of the 615 billion weak yen impact. Prius hybrid, Camry sedan top automaker in terms of
percent to 611.7 billion yen yen ($5.1 billion) average The cheap yen, a boon for and Lexus luxury model, global vehicle sales for the
($5.0 billion) and the auto- forecast in a FactSet survey Japanese exporters such kept its profit forecast for last three years, was out-
maker kept its annual earn- of analysts. as Toyota Motor Corp. be- the fiscal year through paced by Volkswagen AG
ings forecast unchanged Toyota sold 42,000 fewer cause it boosts the value of March unchanged at 2.25 for the first half of the cal-
despite trimming its expec- vehicles at 2.48 million ve- overseas earnings, added trillion yen ($18.5 billion). endar year. But it regained
tations for vehicle sales. hicles in July-September 160 billion yen ($1.3 billion) But Toyota trimmed its fiscal that crown after the first
The company said its earn- compared to the same in operating profit for the year vehicle sales forecast three quarters, thanks part-
ings for the July-September period last year, with sales quarter. The yen traded to 10 million vehicles, down ly to the scandal over emis-
quarter benefited from falling in Europe and Asia, above 120 to the dollar dur- from its previous forecast for sions tests unfolding at the
cost cuts and a favorable including Japan. But the ing the quarter compared 10.15 million vehicles. It sold German rival.q

Fannie Mae posts $2B profit for 3Q; paying $2.2B dividend

This photo shows the front of the Fannie Mae headquarters in Washington. The mortgage giant ment rescued Fannie and for the two companies, un-
reported net income of $2 billion from July through September, 2015 down from $3.9 billion a year smaller sibling Freddie Mac der their agreements with
earlier. The results posted Thursday, Nov. 5, 2015 marked the 15th straight profitable quarter for after they suffered huge the government, “will likely
Washington-based Fannie Mae. losses from risky mortgages make both enterprises in-
in the housing market bust. creasingly susceptible to
(AP Photo/Manuel Balce Ceneta, File) Together the companies the possibility of quarterly
received rescue loans to- losses that could result in
MARCY GORDON third-quarter decline in Fannie said it will pay a divi- taling about $187 billion. draws” from the Treasury,
AP Business Writer profit mainly to losses on dend of $2.2 billion to the The housing market’s grad- Mel Watt, director of the
WASHINGTON (AP) — Mort- the investments it uses to U.S. Treasury next month. ual recovery has made Federal Housing Finance
gage giant Fannie Mae hedge against swings in in- With that payment, Fan- Freddie and Fannie profit- Agency, said in a state-
reported net income of $2 terest rates. nie will have paid a total able again. ment Tuesday.
billion for the July-Septem- Nonetheless, the results $144.8 billion in dividends. Freddie reported Tuesday Fannie and Freddie own
ber period, down from $3.9 posted Thursday marked Fannie received $116 bil- a $475 million net loss for or guarantee about half of
billion a year earlier. the 15th straight profitable lion from taxpayers during the third quarter, also due all U.S. mortgages, worth
The government-controlled quarter for Washington- the financial crisis in Sep- to losses on derivatives. As about $5 trillion. Along with
company attributed the based Fannie Mae. tember 2008. The govern- a result, Freddie is skipping other federal agencies,
paying a quarterly divi- they back roughly 90 per-
dend to the U.S. Treasury cent of new home loans.
next month. The company The two companies don’t
said the loss — compared directly make loans to bor-
with net income of $2.1 bil- rowers. They buy mortgag-
lion a year earlier — mainly es from lenders, package
reflected accounting mea- them as bonds, guarantee
sures for the losses, while them against default and
its business was strong and sell them to investors. That
continue to improve. helps make loans avail-
But the head of the federal able.
agency that oversees Fan- The companies’ quarterly
nie and Freddie raised the earnings can fluctuate
possibility that future quar- widely due to changes in
terly losses could mean interest rates.
they would have to receive Fannie reported that it lost
further government aid. $2.6 billion on accounting
Volatile interest rates and for derivatives in the third
reduced capital cushions quarter. q

Fiat Chrysler’s US 3Q profit falls 89 percent on recall costs

TOM KRISHER Fiat Chrysler US posted just The company relied on its In July, FCA US reached by Chrysler to have the ve-
AP Auto Writer over $1 billion in one-time booming Jeep brand for agreement with the U.S. hicles repaired.
DETROIT (AP) — Net income pretax charges, including worldwide sales and rev- National Highway Traffic The recall actions were part
at Fiat Chrysler’s U.S. opera- an $848 million adjustment enue increases. Revenue Safety Administration to of a costly deal with safety
tions fell 89 percent in the for recalls and $159 million rose 5 percent to $21.8 bil- buy back from customers regulators to settle allega-
third quarter as the com- for vehicles damaged in a lion. more than 500,000 Ram tions of misconduct in 23
pany set aside millions to Chinese port explosion last Vehicle sales worldwide pickup trucks and other ve- recalls covering more than
pay for future safety recalls. August. for the unit, known as FCA hicles in the biggest such 11 million vehicles.
The Auburn Hills, Michigan, Without the charges the US LLC, rose to 737,000 for action in U.S. history. In ad-
company says its net profit company would have had the quarter, up 4 percent. dition, owners of more than The company also is un-
was $70 million from July a modified operating profit Jeep sells only SUVs, which a million older Jeeps with der investigation by NHTSA
through September com- of nearly $1.3 billion, 34 per- are in high demand in the vulnerable rear-mounted for failing to report traffic
pared with $611 million a cent higher than a year U.S. and worldwide as buy- gas tanks will be able to deaths involving its cars
year ago. ago. ers pick them over sedans. trade them in or be paid to the agency in a timely
manner. q