Toyota boosts income in 9 months, upgrades full-year outlook

Japanese car giant Toyota on Thursday reported a surge in net profit on record sales for the nine months to December, and upgraded its full-year profit forecasts.

But the maker of the Camry sedan and Prius hybrid warned it was closely watching the impact of the new coronavirus in China, where the firm has suspended operations at more than 10 plants.

Toyota said net profit for April-December surged 41.4 percent on-year to ¥2 trillion ($18 billion) with sales up 1.6 percent at ¥22.8 trillion, the highest ever for the period.

The profit jump was mainly due to strong revenue, cost-cutting efforts and gains in shares it holds.

By region, sales in North America – its cash cow – as well as Japan and Europe increased for the nine months but those in Asia declined.

The company revised upward its full-year profit forecast, now projecting a net profit of ¥2.35 trillion for the fiscal year to March, compared with its earlier estimate of ¥2.15 trillion, thanks to foreign exchange gains.

Operating profit is now forecast at ¥2.5 trillion, up from ¥2.4 trillion estimated earlier, while its sales outlook remained unchanged at ¥29.5 trillion.

“Despite the industry’s tough business environment, Toyota is showing a steady performance compared with its rivals,” said Satoru Takada, auto analyst at TIW, a Tokyo-based research and consulting firm.