For the first time since 2009, Toyota is buying back its share stock as its cash reserves rise on higher profitability helped by the weaker yen.
Toyota said in a statement that it will repurchase as many as 60m shares, equivalent to a 1.9% stake, for 360bn yen.
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Risings profits at Toyota have led to calls from some investors and analysts for the company to return money to investors or invest in new capacity in emerging markets.
The buyback announcement caused Toyota’s share price to rise.
The buyback coincides with the company forming the Toyota Mobility Foundation, which will support projects aimed at improving transportation systems in developing markets, the company said.
Toyota said the Foundation is formed with the mission of contributing to “building a better mobility society,” and will play a role in integrating the efforts toward “better communities and better societies” that enrich people’s lives by promoting the activities of NPOs and research institutions globally and stably, “with a focus on contributing to the public interest in areas relating to our business”.
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By GlobalDataToyota plans to sell 30m of its shares to the foundation at a discounted price of 1 yen each so that the charity can use the stock to fund future activities.
Toyota has said it aims to pay 30% of net income as dividends and that the company won’t build any new factories until at least 2015 as it focuses on improving efficiency at existing plants.
