Toyota lifts profit forecast for 2012-13 fiscal year to JPY860 billion

Article by Anita Panait, on February 6, 2013

Toyota Motor Corp. has updated its net profit outlook to reflect an expected increase in net income for the fiscal year ending March 31, 2013. The Japanese carmaker now expects to post JPY860 billion ($9.3 billion) in net profit for its fiscal year, up from the previous guidance of JPY780 billion.

The carmaker’s revised outlook reflects improved demand in key markets like the United States as well as the improved profitability brought about to the weakening Japanese currency against the US dollar.

Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management remarked that if the current weak yen trend continues, the Japanese carmaker's profit will also probably jump for the next fiscal year. He noted that if a recovery in the US economy serves as a tailwind, Toyota’s stock price has “more upside.”

Toyota said that it expects to export 2.2 million vehicles in the US this calendar year, equivalent to an annual rise of 6 percent. Toyota, however, said it would not construct new plants over the next three years despite experiencing a rise in its global business.

Among Japan's big three carmakers -- Toyota, Nissan Motor Co and Honda Motor Co -- Toyota is expected by analysts to benefit the most from a weakening yen since it has the highest ratio of production in Japan, over half of which is exported.

Toyota’s Japanese operations, including domestic manufacturing for export, used to account for around half of the carmaker’s profit, but they began to experience losses following the Lehman Brothers crisis in 2008. The yen currently is trading around 92 to the dollar, compared with 78 at the start of October 2012.

The 2013 iteration of the Toyota Avalon is created with a revised formula, resulting to a sedan that isn’t only dynamic, but also appealing in its own terms. Moreover, the new Avalon represents the carmaker’s new design and product direction for its future sedans.

Bill Fay, Group Vice President and General Manager at Toyota Division, said that the 2013 Avalon is a showcase of the company’s car-building prowess while injecting new levels of excitement, dynamic capability and refinement into the nameplate.

Since the new Avalon is designed by the Calty Design Research and engineered by the Toyota Technical Center-Ann Arbor, it is certainly a greatly improved product that doesn’t only make use of the carmaker’s production resources, but also creates a statement. Randy Stephens, chief engineer of Avalon, remarked that the latest iteration of the sedan serves as a statement to the market that 'Toyota is Back!'

As created, the new Avalon should lead the brand in terms of styling, handling performance as well as technologies. Toyota has intended the all-new Avalon to fuse great elements like higher levels of level of craftsmanship, passionate styling and groundbreaking technologies to help reposition the brand’s flagship sedan in the premium mid-size segment.

Tasked with designing the next generation of the Toyota Avalon, Calty – with an aim to reposition the sedan and change consumer perception – penned an exterior that expresses athleticism in its sheet metal. This is practically why, when compared to its predecessors, the new Avalon sedan dons a completely new design.

One of the highlights of the dynamic design of the new 2013 Toyota Avalon is its roofline that flows longer than before. This resulted to a more appealing side profile that is complemented by its lower beltline. The all- new 2013 Toyota Avalon also features a chiseled shoulder line flowing over the front wheels, lending the flagship with a more fluid side design and a more dynamic stance. Overall, the exterior of the new Toyota Avalon features a design that conveys the sedan’s true capability, performance and agility.

Topics: toyota, profit

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