New financial figures released by Toyota suggest the embattled Japanese automaker is recovering from the global economic crisis and a series of recalls due to quality issues.
The company on Wednesday posted a $2.2 billion profit in the second quarter of 2010 that spanned from April to June. The gains were a major reversal from the same period in 2009, when Toyota reported a loss of over $900 million.
The world's largest automaker has raised its earnings output for the fiscal year ending March 31, 2011 to nearly $4 billion, based on projected sales of 7.38 million vehicles.
Toyota has benefitted from sales incentives in the U.S. market, a weak yen, which lowers the costs of vehicles in overseas markets, plus government subsidies for Japanese consumers seeking to buy fuel-efficient cars.
But the Japanese subsidies will be phased out in September, and Toyota is lowering the sales incentives in the U.S.
The automaker's reputation for quality has been tarnished by a global recall of more than 10 million vehicles for various safety problems, including unintended acceleration involving sticking gas pedals and floor mats, and faulty braking and steering equipment.
Some information for this report was provided by AP, AFP and Reuters.