Toyota Motor Corp. raised its profit forecast for this fiscal year as the yen's rally stopped short of levels that the automaker had predicted, providing some respite from a sales slowdown that is threatening its position as the world's top seller.
Operating profit will probably be ¥1.7 trillion for the year ending in March, compared with the ¥1.6 trillion forecast by the Aichi Prefecture-based company in August. Net income for the quarter ended September fell to ¥393.7 billion, beating analysts' estimates.
A peaking U.S. auto market, tepid demand for the new Prius hybrid and a dearth of other major new models in its showrooms have dragged Toyota behind scandal-hit Volkswagen AG in global deliveries this year. The stronger yen is also reducing the value of record deliveries of RAV4 and other sport utility vehicles in overseas markets and making exports of Japan-made Prius and Lexus luxury vehicles less competitive.