Toyota's Rosy but Risky Forecast

In the midst of mounting recall troubles, Toyota (TM) released earnings for its third quarter ending Dec. 31 and said it posted a profit for the period. On a consolidated basis, net revenues for the quarter were 5.3 trillion yen -- an increase of 10.2% compared with the same period last fiscal year. Operating income increased from a loss of 360.6 billion yen to a gain of 189.1 billion yen, while pre-tax income, minority interest and equity in earnings of affiliated companies totaled 224.9 billion yen. Net income increased from a loss of 164.7 billion yen to a plus 153.2 billion yen. The net profit translates into about $1.7 billion U.S. dollars. Several media reports said the numbers topped analyst forecasts.