The world's largest car company Toyota increases its profit forecast

2023-11-01 09:01:00

Volkswagen’s rival now expects to achieve 4.5 trillion yen (28 billion euros) in operating profit for the fiscal year (end of March), as the Japanese group announced on Wednesday at its Toyota headquarters. Toyota had previously promised 3 trillion yen. In the first half of the financial year, Toyota benefited primarily from more relaxed supply chains, improved profitability and the weak yen. A weakening home currency can boost business for exporters like Toyota. In addition, more of the income generated in the dollar area remains after being converted into yen. In addition, global demand was robust and the Japanese car manufacturer sold more vehicles in all regions. In total, the group (including the Lexus brand) sold 5.6 million vehicles. This puts him on track for the annual target of 11.4 million.

From April to the end of September, sales rose by almost a quarter to around 22 trillion yen. At 2.56 trillion yen, operating profit was more than twice as high as in the same period last year. The net profit increased similarly significantly to almost 2.6 trillion yen; financial effects outside of day-to-day business also played a role here. In addition, Toyota announced a share buyback program of up to 100 billion yen and increased its proposed dividend by 5 yen to 30 yen per share.