Toyota Motor on Tuesday stuck to its annual operating profit forecast, underscoring concerns over a persistent shortage of semiconductors and auto parts, as well as supply-chain disruptions, even as it reaped the benefits of the yen’s historic decline. The carmaker also unveiled a share buyback of as much as ¥150 billion ($1 billion).
Operating profit is on track to be ¥2.4 trillion for the fiscal year through March, Toyota said in a statement, unchanged from its initial guidance and below analysts’ average estimate of ¥2.98 trillion. The world’s biggest carmaker also cut its production target for the year to 9.2 million vehicles from 9.7 million due to parts shortages.
For the full year, Toyota raised its sales target to ¥36 trillion, compared with analysts’ estimates of ¥36.3 trillion and the company’s prior guidance for ¥34.5 billion.