Toyota posts profit surge and lifts annual outlook as hybrid sales shine

Toyota reported a significant profit surge and raised its annual sales forecast on Thursday, driven by robust demand for hybrid vehicles and a weaker yen. The company, the world's largest automaker, expects an operating profit of 3.9 trillion yen ($24.6 billion) for the fiscal year ending in March, marking a 34% increase from the previous quarter.

This marks Toyota's first profit gain in six quarters, signaling the success of the company's focus on hybrids rather than electric vehicles, as initially predicted. Unlike competitors who shifted heavily towards electric cars and suffered losses, Toyota's hybrid focus has helped maintain its market share, especially in the United States.

The company's operating profit for the July-September quarter was 1.13 trillion yen, surpassing the expected 992 billion yen, according to a poll of nine industry analysts. Despite higher fuel prices due to the ongoing conflict in the Middle East and increased material costs, Toyota's management is optimistic, attributing its success to sales efforts and cost reductions.

The company's shares surged more than 14% in afternoon trading, reaching their biggest single-day gain since 2008.