Toyota raised its operating profit forecast 50% after posting record quarterly earnings, thanks to a weaker yen that’s boosting income brought back home on robust global vehicle demand and improving supply chains.
The stock climbed 4.7% on Wednesday, bolstered by the carmaker’s announcement to buy back as much as ¥100 billion ($660 million), or 0.44%, of its own shares. Operating profit should reach ¥4.5 trillion for the fiscal year through March, up from prior guidance for ¥3 trillion, the company said in a statement.
The Toyota group sold an unprecedented 5.6 million vehicles in April-September, putting it on track for its 11.4 million-unit goal for the fiscal year and remaining the world’s No. 1 carmaker. The results show that demand for its hybrid and fuel-burning powertrains persists, even as China’s BYD, Tesla and others take the lead in the shift to electric.