Toyota hikes profit forecasts on strong demand
Strong hybrid demand and a weak yen lifted the Japanese car giant's expected net profit to US$22.6 billion, despite fierce competition from Chinese rivals.
Japanese automotive conglomerate Toyota announced on Thursday that it had revised its annual profit predictions upwards, citing robust demand for hybrid vehicles and the weakening Japanese yen as key factors. For the fiscal year running through March 31, 2027, the company now forecasts a net profit of 3.57 trillion yen (approximately US$22.6 billion), a significant increase from its earlier estimate of 3.25 trillion yen in August.
Operating profit is projected at 3.9 trillion yen, up from the previous estimate of 3.4 trillion yen.
The firm attributed the projected boost to its efforts to counteract the effects of escalating material costs and production interruptions induced by earthquakes and flooding. Toyota accomplished this by optimizing its global supply chain and streamlining operations at its production facilities, which helped maintain overall vehicle sales.
The yen has depreciated due to differences in interest rates between Japan and the United States, high fuel prices, and apprehensions about Prime Minister Sanae Takaichi's ambitious spending plans, which could exacerbate Japan's substantial debt levels.
Despite the weaker currency boosting Japanese exporters' profits, Japanese automakers are facing challenges due to US tariffs, the ongoing conflict in the Middle East, and intense competition from Chinese manufacturers.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Toyota hikes profit forecasts on strong demand freemalaysiatoday.com
