Toyota Recovers From a Slump to Report a $2.2 Billion Profit

senior managing director, Toyota’s net quarterly profit of 190.4 billion yen, or $2.2 billion, was a sharp reversal from a loss of 77.8 billion yen in the period a year ago. The automaker continued to recover from a slump brought on by a global recession and a series of recalls over faulty pedals and inquiries into its safety record.

The company, based in Toyota City, Japan, raised its net profit outlook for the year ending in March 2011 to 340 billion yen, from a 310 billion yen forecast earlier this year, citing a recovery in sales and progress in cost-cutting efforts.Toyota said it now expected to sell 7.38 million vehicles in the fiscal year, up from the 7.29 million forecast earlier.

But Takahiko Ijichi, senior managing director, said the strengthening yen could cloud the outlook. The yen has risen steadily in recent months, hitting an eight-month high against the dollar in ref trading Wednesday as concerns over the American economy caused investors to sell the dollar.