Tokyo, 4 November, /AJMEDIA/
Toyota Motor Corp. on Thursday raised its net profit outlook for the business year to next March to 2.49 trillion yen ($22 billion), lifted by a weak yen despite a shortage of parts triggering output cuts.
Toyota previously forecast a net profit of 2.3 trillion yen for fiscal 2021 and the revised figure represents a 10.9 percent rise from a year earlier.
Its operating profit is projected to rise 27.4 percent to 2.8 trillion yen, upgraded from the earlier estimate of 2.5 trillion yen, as sales will likely gain 10.2 percent to 30 trillion yen, the automaker said.
For the fiscal first half ended in September, Toyota reported record profits.
The world’s top-selling automaker by volume saw a 2.4-fold increase in net profit to 1.52 trillion yen. Operating profit more than tripled from a year earlier to 1.75 trillion yen and sales gained 36.1 percent to 15.48 trillion yen.
Toyota Chief Financial Officer Kenta Kon said the latest upward revision came as it factored in the positive impact of a weak yen, which lifts the automaker’s profits earned overseas when repatriated.
Toyota trimmed its global sales target for the current year to 10.29 million vehicles from 10.55 million vehicles.
Automakers have been forced to cut output in response to a shortage of semiconductors and factory shutdowns in Southeast Asia, hit by surging COVID-19 cases.
Toyota is known for its robust supply chain and “just-in-time” production system but it has also had to go ahead with production cuts, lowering its output target to 9 million units for fiscal 2021 from 9.3 million planned earlier.
Toyota puts its assumed exchange rate for the U.S. dollar at 110 yen, higher than the 105 yen earlier estimated.
