Hybrids help boost Toyota profits

Continued demand for cars such as the Prius hybrid have helped Toyota to healthy quarterly profits.

Toyota said operating profit rose 14% in the October to December period, as a weaker yen boosted overseas earnings.

The firm, Japan's biggest carmaker, is seeing strong demand for its hybrids, which use petrol and electric power.

Toyota, which this year may surpass General Motors as the world's biggest carmaker, recorded an operating profit of 482.21bn yen ($4.05bn; £2.3bn).

US roll-outs

Toyota hopes to see worldwide Prius sales of one million a year by 2010. Demand for hybrids looks set to increase in coming years as they address global environmental and energy supply problems.

Meanwhile, Toyota's cost-cutting has enabled it to embark on capital spending on new and bigger manufacturing plants across the globe.

New models such as the Camry and Lexus LS sedans are to be rolled out in the US market soon, as Toyota looks to build a record number of vehicles in 2006.

Net profit was up 34.1% to 397.57bn yen thanks to a rise in the value of Toyota's stake in the former UFJ Holdings, after the bank's merger to form the Mitsubishi UFJ Financial Group.