Toyota NYSE:TMraised its full-year profit forecast to 780 billion yen (HK$75.2 billion) despite saying it expected to sell fewer cars due to weakness in Europe and China.
Japan’s biggest automaker also said operating profit would come in at 1.05 trillion yen for the year to March, up from 1.0 trillion yen, while sales would be lower at 21.3 trillion yen, from 22 trillion yen forecasted earlier.
A strong yen and weaker sales outlook continued to weigh, but the boost in earnings expectations was largely due to what Toyota described as “profit-improvement activities”.
The company also said net profit in the first half of the fiscal year surged more than six-fold to 548.27 billion yen on sales of 10.91 trillion yen, 36 percent higher than a year earlier.
Toyota said it has “seen a significant increase in production in all regions compared to the same period last year when we suffered parts-supply shortages’’ as a result of the earthquake in Fukushima, where a nuclear plant exploded spewing radiation.
However the company said it expected to sell 8.75 million vehicles globally in its fiscal year, down from an earlier 8.8 million forecast.
The change was “due to uncertainties in the Chinese and European market environments”, Toyota said.
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