Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Toyota first-half net profit up 16pc, lifts full-year forecast

Revenue for the first half increased 3.4 percent to a record 14.7 trillion yen amid steady vehicle sales in North America, Europe, and Asia./AFP

TokyoJapan, Nov 6 – Japanese car giant Toyota upgraded its full-year forecast Tuesday, as the firm posted a 16-per cent gain in net profit for the six months to September thanks to steady global sales and cost-cutting efforts.

The maker of the Camry sedan and Prius hybrid revised upward its net profit forecast to 2.3 trillion yen ($20.3 billion) from its earlier estimate of 2.12 trillion yen for the year to March 2019 thanks to a weak yen.

But even if the firm, which also has the Lexus luxury brand, hits this forecast, profits would still be lower than the record 2.49 trillion yen posted for the previous fiscal year.

In the April-September period, Toyota’s bottom-line profit rose 16 percent to 1.24 trillion yen, beating a 10-percent gain forecast by analysts.

The upbeat results boosted its shares by more than two percent on the Tokyo Stock Exchange.

Senior managing officer Masayoshi Shirayanagi said in a statement the firm was “steadily making progress” in its efforts to cut costs.

Revenue for the first half increased 3.4 percent to a record 14.7 trillion yen amid steady vehicle sales in North America, Europe, and Asia.

Toyota also revised upward its full-year sales forecast to what would be a record 29.5 trillion yen.

“Toyota is showing solid results so far in this fiscal year thanks to its cost-cutting efforts,” said Satoru Takada, an analyst at TIW, a Tokyo-based research and consulting firm.

Japanese automakers, however, remain on edge over talk of US tariffs, though immediate action by Washington has been put off for now.

Advertisement. Scroll to continue reading.

“Trade rows are still hanging over the Japanese auto industry,” Takada told AFP.

“Immediate fears of extra tariffs on Japanese auto exports have been put off for now but they may revive depending upon Japan-US trade talks,” he said.

Toyota has warned the cost of an imported vehicle would rise by $6,000 if the US levies a 25-percent tariff on cars and parts from abroad.

“We can’t yet say the risk has receded,” said Didier Leroy, Toyota executive vice president.

“There is still great uncertainty. Our goal is to be ready if it should happen,” Leroy told AFP.

In September, Donald Trump and Japan’s Prime Minister Shinzo Abe announced an agreement to start negotiations on a trade deal.

The two leaders also agreed that the US will not impose additional tariffs on Japanese-made cars as long as the bilateral negotiations continue.

“Japanese carmakers are also bracing for the impact of US trade disputes with other major economies,” Takada said.

Last week Honda Motor upgraded its annual forecasts after first-half profits rose more than 19 percent on brisk sales of motorcycles in Asia.

Advertisement. Scroll to continue reading.

Japan’s third-largest automaker now expects net profit to reach 675 billion yen for the fiscal year, down from last year but a still an increase from its forecast last quarter.

Their rival Nissan Motor is scheduled to announce first-half results on Thursday.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...