Toyota Motor is expected to forecast higher profit for the year ahead when it reports earnings this week, helped by solid demand and a weaker yen, even as commodities costs and supply chain issues pressure the global auto industry, Reuters reported.
The market will be watching closely to see how much of a negative impact higher commodities prices will have on Toyota and other Japanese automakers, as well as their expectations for the currency, Seiji Sugiura, a senior analyst at Tokai Tokyo Research Institute, told the news agency.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Toyota is expected to forecast an 11% increase in operating profit to JPY3.36 trillion (US$25.7 billion) for the financil year that started on 1 April, according to a poll of 25 analysts by Refinitiv cited by Reuters.
For the fiscal year just ended, analysts expect profit up 37% to JPY3.02 trillion.
Rival Honda Motor was expected to forecast a 13% increase in profit to JPY 925 billion while Nissan Motor was expected to forecast a 50% jump to JPY318.5 billion, according to Refinitiv data cited by Reuters.
Toyota will report results on Wednesday, Nissan on Thursday and Honda on Friday.
