Shares up significantly: Toyota raises profit forecast

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The company expects its operating result to reach 4.5 trillion yen (CHF 27 billion) in the fiscal year (ending at the end of March), the Japanese company announced on Wednesday.

Toyota had previously promised 3 trillion yen. The stock rose a good four and a half percent on the Tokyo stock exchange.

In the first half of the fiscal year, Toyota benefited primarily from smoother supply chains, increased profitability and weakness in the yen. A weakening local currency could boost business for exporters like Toyota. In addition, a large part of the income earned in dollars remains after conversion to yen.

Additionally, global demand was strong; The Japanese automaker sold more vehicles in all regions. The group sold a total of 5.6 million vehicles, including the Lexus brand. This puts it on track for its annual target of 11.4 million.

From April 2023 to the end of September 2023, sales reached nearly 22 trillion yen, an increase of almost a quarter compared to the same period last year. At 2.56 trillion yen, operating profit more than doubled from the previous year.

Net profit similarly increased significantly, reaching approximately 2.6 trillion yen; Financial influences other than day-to-day business also played a role here. Additionally, Toyota announced a share repurchase program of up to 100 billion yen and increased the proposed dividend by 5 yen to 30 yen per share. (SDA)

Source :Blick