TOKYO -- Toyota Motor Corp.'s North American profit margins are shrinking. But the carmaker says it isn't worried.
North American operating profits rose 1.7 percent to ¥140.13 billion, or $1.22 billion at current exchange rates, in the April-June quarter. The rise did not keep pace with an 18.8 percent gain in North American revenues, to $18.93 billion.
Startup costs for a truck plant in San Antonio, weighed on profits.
Takeshi Suzuki, Toyota's senior managing director for the accounting group, concedes that small vehicles, such as the RAV4 and the Yaris, have smaller margins and account for a rising share of U.S. sales. But he says he's not worried about Toyota's profit outlook.
Thanks to rising gasoline prices, Toyota is enjoying brisk sales of small vehicles. Total unit sales in North America jumped 16.5 percent to 747,000 in the latest quarter, from 641,000 a year earlier, the company says.
Small vehicles also need fewer incentives. Toyota's average incentives per vehicle fell to $759 in the April-June term from $1,090 a year earlier, Suzuki says.
Worldwide operating profits rose 26.5 percent to $4.45 billion. Favorable currency rates accounted for almost all of the gain.
Net profits rose 39.2 percent to $3.22 billion. Revenues rose 13.2 percent to $48.92 billion. Global unit sales rose to 2,208,000 from 2,058,000 a year earlier.
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