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Toyota profits fall in face of rising costs

Toyota Motor Corporation has posted its second quarterly profit decline, as earnings were hurt by pension costs, currency fluctuations and higher spending.

Net income fell 6.9% to 267 billion yen (£1.3bn) in the quarter ended June, from 287 billion yen (£1.5bn) last year, the Toyota-city, Japan-based carmaker said today. Sales rose 10.5% to 4.98 trillion yen (£25bn) in the quarter.

Toyota will open new factories in the US, Canada and Russia over the next three years to meet its goal of surpassing General Motors as the world's largest carmaker in the next decade.

The company said operating profit was reduced by 10 billion yen (£50.5m) due to foreign exchange expenses.

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