TOKYO — Japanese juggernaut Toyota Motor Corp., coming off a year of record profits, saw earnings retreat in the latest quarter but remains bullish about U.S. economic prospects.
The company, in announcing its quarterly financial results last week, downplayed talk of a budding recession in the all-important U.S. market, saying key economic indicators remain strong.
"In the U.S., service consumption is still growing, and the employment situation is still strong," Toyota said. "Given that, we don't see an economic recession or economic slowdown in the U.S."
The sentiment echoed that of fellow Japanese automaker Subaru Corp., which also reported fiscal first-quarter earnings last week. Subaru said U.S. demand for autos remains robust.
"Despite concerns over an economic slowdown, there has been no change in sales momentum at our retailers," CFO Katsuyuki Mizuma said after announcing that Subaru's operating profit grew 25 percent in the April-June quarter. "If we can produce more cars, that will lead to more sales."