Tokyo (CNN) -- Rebounding from safety recalls and an unfavorable exchange rate, Toyota released an upbeat financial forecast with three months left in the fiscal year.
Executives at the world's largest automaker said net profits nearly quadrupled between April and December when compared to a year ago, but have slowed in recent months.
Toyota saw sluggish sales in the third quarter, with net income falling to 93.6 billion yen (US $1.1 billion) from 153.2 billion yen (US $1.87 billion) -- a 38.9% drop as compared to the third quarter of last year.
Toyota executives blamed the rollback of government incentives for green cars, which hurt the automaker's Prius sales, and the effects of the strong yen.
The yen has strengthened approximately 15% compared to the U.S. dollar during the fiscal year, eating into company profits when funds are repatriated.
But strong sales earlier in the year offset the third quarter drop in sales. CNN
