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.
Toyota has boosted its profit forecasts for the current fiscal year, citing strong demand for hybrid vehicles and a weaker yen as key factors driving the decision. The automaker anticipates a net profit of 3.57 trillion yen, up from the previous estimate of 3.25 trillion yen in August. Operating profit is expected to reach 3.9 trillion yen, compared to the earlier projection of 3.4 trillion yen.
The company attributes the upward revision to its efforts to counteract rising material costs and production disruptions caused by earthquakes and floods, as well as its optimization of global supply chains. The weak yen, resulting from differences in interest rates, high oil prices, and concerns over Japan's mounting debts, has increased import costs, particularly for oil.
However, this currency weakness also helps Japanese exporters, despite facing challenges from US tariffs and intense competition from Chinese automakers.
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.
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