The Korea Herald


[Graphic News] Cheaper yen benefits Japanese carmakers

By Korea Herald

Published : April 23, 2013 - 20:20

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The cheaper yen is improving the competitiveness of Japanese carmakers, while their Korean and German rivals are expected to struggle with falling profits.

According to IBES earnings estimates on Tuesday, Toyota is estimated to log $4.79 billion in operating profit in the first quarter, a 60.5 percent increase from a year ago.

Japan’s Nissan and Honda were also to see a 38 percent and 23.6 percent increase in profits, respectively.

Despite their increased sales this year, however, Korea’s Hyundai and Kia are expected to post declines in their operating profits of minus 29.3 percent and 4.4 percent, respectively.

German carmakers, facing the unprecedented recession in the European auto industry, would be hit harder by the weakening Japanese yen, the data said.

Volkswagen’s first-quarter operating profit would decrease 24.1 percent to $3.13 billion, while Daimler would see its operating profit cut almost in half from a year ago.

By Lee Ji-yoon (