An indication is displayed outdoors a Toyota Motor Corp. dealership on January 30, 2024 in Tokyo, Japan.
Tomohiro Ohsumi | Getty Pictures Information | Getty Pictures
Toyota Motor raised its full-year working revenue forecast by almost 9% on Tuesday, after its third-quarter earnings raced previous analysts’ estimates due to a weaker yen and powerful gross sales of high-margin automobiles and hybrid automobiles.
Toyota shares surged 4.4% after the announcement, recovering from a 0.7% fall earlier.
The upper forecast from the world’s best-selling automaker contrasts with a downbeat outlook from a lot of its rivals who’ve warned of tepid gross sales progress and introduced manufacturing cuts this yr resulting from excessive rates of interest and slowing demand for electrical automobiles (EVs).
Toyota, a laggard in battery-powered EVs, is seen outperforming opponents this yr, helped by strong demand for hybrid automobiles, which it pioneered greater than 1 / 4 century in the past with the Prius mannequin.
The Japanese agency raised its revenue forecast for the present yr to 4.9 trillion yen ($33 billion) from 4.5 trillion anticipated beforehand. That’s properly above a mean analyst forecast of 4.6 trillion yen, based on LSEG knowledge.
Toyota’s working revenue for the three months to Dec. 31 totalled 1.68 trillion yen, up 75.7% a yr earlier and beating the common 1.3 trillion yen revenue estimate in a ballot of 9 analysts by LSEG.
Hybrids accounted for round one third of the full gross sales of greater than 10 million automobiles of its Toyota and luxurious Lexus manufacturers final yr.
Within the fiscal third quarter, hybrid gross sales soared 46%, contributing to an 11% rise in general car gross sales. By geography, North America, Toyota’s greatest market by quantity, reported the strongest progress with a 28% gross sales surge.
Its dwelling market Japan noticed gross sales develop simply 5% however reported the very best earnings and margin amongst its main markets. Japan contributed two thirds of Toyota’s quarterly revenue and generated a 20% working margin, properly above the corporate’s general margin of 14% and North America’s 3.4%.
A weaker yen foreign money, which has tumbled round 10% towards the greenback since end-2022, bolstered the impression of Toyota’s strong world gross sales.
Toyota retained its crown because the world’s top-selling automaker for the fourth consecutive yr after posting record annual sales of 11.2 million automobiles for 2023.
However the agency is grappling with a collection of scandals at its group corporations over product certification take a look at procedures that threaten to harm its repute for high quality and security.
Toyota’s chairman apologized final week for the inconvenience and concern brought on by misconduct at two subsidiaries and an affiliate.