Cost reduction efforts have helped Toyota report an increase in its first quarter profits.
In its financial results for the first quarter of the year to June 30, 2015, the Japanese car manufacturer said that net income increased 10 per cent from 587.7 billion yen (£3 billion) to 646.3bn yen (£3.3 billion).
Although the number of vehicles sold in the period dropped, net revenues were up 9.3 per cent to 6.98 trillion yen (£40 billion).
Toyota Motor Corporation managing officer Tetsuya Otake said operating income increased by 63.2bn yen (£300 million) compared to the same period of the previous financial year.
“Favourable foreign exchange rates and cost reduction efforts were main positive factors, while decreased vehicle sales and increased expenses to support initiatives for enhancing competitiveness were negative factors,” he said.
Cost reductions in engineering accounted for 50 billion (£260 million) of the 60 billion yen (£300 million) total in reductions, with cuts in manufacturing and logistics costs accounting for the rest.
Vehicle sales fell in most regions including Europe, Japan and Asia, but rose in North America. Toyota revised its consolidated vehicle sales forecast for the fiscal year ending March 31, 2016, from 8.9 million units to 8.95 million units.
In March this year, Toyota said that it would work more closely with suppliers to reduce costs and reinvest the resulting resources into developing advanced technologies and strengthening product appeal.