Toyota Raises Outlook Slightly; Cost Cuts Boost Quarterly Profit
February 05 2016 - 2:10AM
Dow Jones News
TOKYO—Toyota Motor Corp. raised its full-year net profit
forecast slightly Friday and posted 4.7% growth in quarterly net
profit after cost cuts offset falling vehicle sales in Asia and
Europe.
Toyota now expects to post a record ¥ 2.27 trillion ($19.43
billion) in net profit for the year ending March 31, up 4.4% from a
year earlier.
Its third-quarter net income was ¥ 627.9 billion, above a mean
estimate of ¥ 615.5 billion according to analysts surveyed by
Thomson Reuters. It booked ¥ 7.3 trillion in quarterly revenue, up
2.4% from a year ago.
The world's biggest auto maker was the only car maker world-wide
to sell more than 10 million vehicles last year, outselling
Volkswagen AG and General Motors. In 2016, Toyota and its
subsidiaries, Daihatsu Motor Co. and Hino Motors, expect to sell
10.11 million vehicles, slightly lower than last year.
While most auto makers including Toyota expect sales to remain
strong in the U.S. this year, growth in that market is nearing its
peak, some analysts say. And as sales slip in emerging markets such
as Brazil and Russia, Toyota would need to identify where its
growth would come from in the future.
In Japan, Toyota is set to halt plant operations next week due
to a parts shortage, after an accident at a steel supplier. While
the suspension, which could amount to lost production of around
80,000 vehicles, is likely to bite Toyota in the short term, it
should be able to catch up in lost production in the long term,
analysts say.
Toyota is among a dozen or so auto makers recalling altogether
tens of millions of vehicles loaded with potentially rupture-prone
Takata Corp.-made air bags, which have been linked to 10 deaths.
Takata is also releasing its third-quarter results on Friday.
Write to Yoko Kubota at yoko.kubota@wsj.com
(END) Dow Jones Newswires
February 05, 2016 01:55 ET (06:55 GMT)
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