Toyota has raised its forecast for operating profit this year after reporting a boost to second quarter earnings helped by a cheaper yen.
The second quarter saw Toyota report revenues up 10.2% year-on-year to 7,143 billion yen; operating income was up 10% to 522.2 billion yen and net income up 16.4% to 458.2 billion yen.
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Over the first half (April-September) though, operating income was down to 1,096.5 billion yen (-20.3 billion yen, year-on-year).
Commenting on the results, TMC Executive Vice President Osamu Nagata said: “Despite the positive effect of yen depreciation and cost reduction efforts, operating income decreased by 20.3 billion yen [H1] mainly due to the effects of marketing activities and an increase in expenses.”
However, the company raised its forecast for operating income in the year ending in March 2018 to 2 trillion yen, up from the 1.85 trillion yen forecast in August. Toyota posted an operating profit of 1.99 trillion yen in the previous financial year.
Net income forecast for the current fiscal year is now at 1,950.0 billion yen, up 200 billion yen from the previous forecast (on unchanged revenue forecast at 28,500 billion yen).
Consolidated vehicle sales for the six-month period ended September 30 totalled 4,389,435 units, an increase of 25,898 units compared to the same period last fiscal year.
In Japan, H1 vehicle sales totalled 1,087,354 units, an increase of 8,544 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 156 billion yen to 641.7 billion yen.
Toyota was hit by intensified competition in the US. In North America, H1 vehicle sales totalled 1,396,158 units, a decrease of 4,211 units. Operating income, excluding the impact of valuation gains/losses from interest rate swaps, decreased by 155.6 billion yen to 141.1 billion yen.
In Europe, H1 vehicle sales totalled 469,503 units, an increase of 35,122 units, while operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 4.4 billion yen to 39 billion yen.
In Asia, H1 vehicle sales totalled 743,939 units, a decrease of 20,811 units, while operating income, excluding the impact of valuation gains/losses from interest rate swaps, decreased by 6.7 billion yen to 212.9 billion yen.
In other regions (including Central and South America, Oceania, Africa and the Middle East), H1 vehicle sales totalled 692,481 units, an increase of 7,254 units, while operating income, excluding the impact of valuation gains/losses from interest rate swaps, increased by 16.6 billion yen to 71.8 billion yen.
For the fiscal year ending March 31, 2018, TMC revised its consolidated vehicle sales forecast from 8.9 million units to 8.95 million units, in ‘consideration of the latest sales trends worldwide’.
Toyota also said it’s going to buy back up to 1.5% of shares for 250 billion yen.
