TOKYO -- Toyota Motor Corp. spent its way to lower operating profits in the quarter ended Sept. 30.
Most of the added spending was in Japan. Launching the Lexus brand in Japan, adding factory capacity at home and abroad, and developing new models all ate into operating profits.
Toyota raised its forecast for North American vehicle sales in the October 2005-March 2006 second half of the fiscal year.
Operating profits fell 3.2 percent to 404.3 billion yen, or $3.58 billion at current exchange rates, in the three months to Sept. 30 compared with the year-earlier period. Net income rose 2.1 percent to $2.68 billion.
Revenues rose 10.1 percent to $43.92 billion.
Toyota now predicts North American sales of 1.3 million in the six months ending March 31, up from 1.15 million a year earlier.
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