Toyota raised its operating profit forecast 50% after posting record quarterly earnings, thanks to a weaker yen that’s boosting income brought back home on robust global vehicle demand and improving supply chains.
The stock climbed 4.7% on Wednesday, bolstered by the carmaker’s announcement to buy back as much as ¥100 billion ($660 million), or 0.44%, of its own shares. Operating profit should reach ¥4.5 trillion for the fiscal year through March, up from prior guidance for ¥3 trillion, the company said in a statement.
The Toyota group sold an unprecedented 5.6 million vehicles in April-September, putting it on track for its 11.4 million-unit goal for the fiscal year and remaining the world’s No. 1 carmaker. The results show that demand for its hybrid and fuel-burning powertrains persists, even as China’s BYD, Tesla and others take the lead in the shift to electric.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.