Japanese automaker Toyota Motor Corp.(TM: Quote, TYT.L) Monday lifted its profit forecast for the year, while cutting its production outlook, citing uncertainties in the Chinese and European markets. The company reported higher profit and revenue for the first half of the year, with increased production in all regions.
The second quarter was marked with anti-Japan demonstrations in China, after Japan, in mid-September, announced the purchase of three disputed islands in the East China Sea that are claimed by both nations. The purchase led to anti-Japan protests in China, affecting the businesses of many Japanese companies and forcing them to scale down production.
The company now expects consolidated vehicle sales for fiscal year ending March 31, 2013 to be 8.750 million units, a decrease of 50 thousand units from the 8.800 million units forecast issued in August.
Toyota expects full-year net income of 780.0 billion yen, operating income of 1.05 trillion yen and net revenue of 21.3 trillion yen for the year.
In August, the company projected net income of 760 billion yen and revenue to be 22 trillion yen. The company also said at that time that it is maintaining its operating income forecast of 1 trillion yen.
Last week, Honda Motor Co., Ltd. (HMC: Quote) cut its full-year profit and revenue forecast, after anti-Japan protests in China.
Toyota's net income attributable to the company for the second quarter advanced to 257.92 billion yen ($3.21 billion) from 80.42 billion yen. Earnings per share climbed to 81.44 yen from 25.65 yen. Total net revenues in the quarter climbed to 5.41 trillion yen from 4.57 trillion yen in the prior year.
For the first six months of the fiscal, profit surged to 548.27 billion yen from 81.58 billion yen in the previous year. Net revenues increased 36.1 percent to 10.9 trillion yen.
TMC Executive Vice President Satoshi Ozawa said, "For the first six months of this financial year, we have seen a significant increase in production in all regions compared to the same period last year when we suffered parts-supply shortages due to the Great East Japan Earthquake...Although the strong yen continued to affect us, government measures in various countries and regions to spur demand increased vehicle sales and our companywide cost-improvement efforts continued to bear fruit."
Net revenues for the automotive operations increased 39.8 percent to 10.13 trillion yen, amid higher volume and vehicle unit sales.
Net revenues climbed 37.7 percent in Japan and 56.9 percent in North America, while it advanced 41.6 percent in Asia.
Vehicle sales totaled 4.516 million units, up 49.2 percent from last year. Sales climbed 49.5 percent in Japan, and increased 49.1 percent overseas.
The company also announced an interim cash dividend of 30 yen per share.
The stock closed Monday in Tokyo higher by 2.2 percent at 3,210 yen.
by RTT Staff Writer
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