Toyota raises annual profit forecast

6th Nov 2013 09:25

Toyota Motor Corp. has raised its annual profit forecast as a weaker yen and cost-cutting measures boosted earnings in the six months through September. The world's leading carmaker expects 1.67trn yen in net profit for the year ending March 2014, compared to a previous forecast of 1.48trn yen.Net revenue for the half-year came to 12.53trn, up 14.9% from the prior year, as a weakening yen lifted exports for the Japanese company.Operating income increased by 693.7bn yen to 1.25trn yen while net income grew from 548.2bn yen to 1.00trn yen.Currency fluctuations of 540bn yen, cost reduction efforts of 140bn yen and marketing activities of 40bn yen helped mitigate a fall in consolidated vehicle sales of 48,425 units to about 4.46m."In addition to the impact of the weaker yen, operating income increased due to our efforts with our suppliers and distributors for profit improvement through cost reduction and marketing activities, such as enhancement of the model mix," said Executive Vice President Nobuyori Kodaira. The group predicts full-year vehicle sales of 9.1m units, net revenue of 25trn yen, operating income of 2.20trn yen and net income of 1.67trn yen, based on an exchange rate of 97 yen to the US dollar and 130 yen to the euro."To achieve sustainable growth, we will continue to focus on strengthening our profit structure through continued gross profit improvement per vehicle and control of fixed costs," said Kodaira.Shares rose 1.25% to 6,348p at 10:08 on Wednesday.RD