Toyota Motor Corp now forecasts an operating profit of £9.6 billion, compared with previous estimate of £3.68 billion
Toyota Motor Corp on Friday raised its annual profit forecast by over 100% as sales in China recovered quickly after months of stagnation due to the coronavirus pandemic. However, its profit in the second quarter of the financial year fell by 24%.
The company’s shares closed the regular meeting on Friday with a loss of less than 1%. At 51.61 pounds sterling per share, Toyota Motor is now 7% below the previous year’s decline on the stock market, after recovering from an even lower value of 43.68 pounds sterling per share.
Toyota now forecasts an operating profit of £9.6 billion for this year, compared with £3.68 billion it had previously estimated. Last year the carmaker had reported an operating profit of £18 billion.
According to Refinitiv, the analysts’ current estimate is a slightly lower £9.2 billion for Toyota’s annual operating profit. In the previous quarter (Q1), Toyota had seen a 40% decline in sales, according to the report published in the first week of August.
In the quarter ending in September, the Japanese multinational achieved an operating profit of £3.72 billion, compared with a higher prior-year figure of £4.87 billion. The decline was primarily due to the COVID 19 crisis, which impacted revenues in recent months.
Toyota also said on Friday that it now expects total vehicle sales for the current fiscal year to reach 9.42 million, up 3.5% from the previously forecast 9.1 million vehicles. However, the automaker’s forecast is still below the 10.46 million cars it sold last year.
According to Toyota, sales in September were still 6.9% lower than last year, but were up 12.8% month on month. It was the sixth consecutive month in which Toyota saw an increase in sales.
Demand for Lexus cars and especially electric vehicles, it continued, was strong in China. Toyota’s stock market performance was quite positive last year with an annual profit of more than 15%.
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