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.

Topics: toyota, profit

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries