TOKYO - Japanese car giant Toyota on Tuesday raised its full-year profit forecasts on the back of the weak yen, days after Tokyo and Washington moved to boost the beleaguered currency.
The world's largest automaker by sales said the decision reflected "changes in the external environment such as foreign exchange assumptions, as well as marketing efforts including the establishment of alternative logistics routes to the Middle East".
For the current year to March 31, 2027, Toyota said it expects net income of 3.25 trillion yen ($20.6 billion), up from its previous projection in May of 3.0 trillion yen.
The forecast still foresees a fall in profit by 15.5 percent from the bumper 3.8 trillion yen that Toyota earned in 2024-25.
It predicted operating income of 3.4 trillion yen, up from the last forecast of 3.0 trillion yen, and revenues of 54.0 trillion yen, a rise of 6.5 percent from the previous year.
First-quarter net income soared 75.6 percent to 1.5 trillion yen. Operating income fell 8.8 percent to 1.1 trillion yen and revenues rose 10.4 percent to 13.5 trillion yen, Toyota said.
Japan and the United States confirmed on Monday that they intervened jointly in financial markets last week, buying yen for the first time since the Asian financial crisis in 1998.
Part of President Donald Trump's rationale for doing so was to help American companies and lower the US trade deficit, analysts said.
- AFP