Akio Toyoda

Toyota reports improved quarterly profit despite incentives

Toyota Motor Corp. reported Wednesday that its quarterly profit rose 21 percent as cost cuts and booming sales in some markets offset the toll from higher U.S. incentives.

January-March profit at Toyota, which makes the Camry sedan, Prius hybrid and Lexus luxury models, totaled 480.8 billion yen ($4.4 billion), up from 398 billion yen the same quarter the previous year. Quarterly sales rose nearly 2 percent to 7.58 trillion yen ($69 billion).

The absence of past costs related to the massive Takata air-bag inflator recall, which has slammed automakers around the world, also helped results, said Koji Kobayashi, Toyota's executive vice president and chief financial...