• By The Financial District

Toyota Raises Profit Estimate Due To Weaker Yen

Toyota Motor Corp. on Thursday, August 4, 2022, lifted its net profit forecast for the current business year to 2.36 trillion yen ($17.6 billion), as a greater windfall from a weaker yen is expected to more than offset the impact of higher material costs and production loss from chip shortages, Kyodo News reported.


Photo Insert: For exporters like Toyota, a weaker yen increases profit earned overseas when repatriated in Japan and also boosts the price competitiveness of Japan-made products abroad.



The new outlook for the year to March 2023 compares with the previously projected 2.26 trillion yen and represents a 17.2 percent drop from the record net profit the previous year. Sales forecast was raised to 34.50 trillion yen from 33.0 trillion yen and operating profit projection was left unchanged at 2.40 trillion yen.


The upgrade comes as concerns are growing that the global economy could fall into a recession and auto demand in North America -- the biggest market for the Japanese automaker -- may falter just as sales are recovering from the shock of the pandemic.



"A weaker yen has a big positive impact on our sales," a Toyota official said, Mainichi Japan also reported.


The company has now set the dollar rate at 130 yen for the current fiscal year, weaker than the previous assumption of 115 yen against the US dollar, and 140 yen against the euro, compared with 130 yen earlier.


All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

The weaker-than-expected yen boosted its operating profit outlook by 670 billion yen from its earlier forecast. For exporters like Toyota, a weaker yen increases profit earned overseas when repatriated in Japan and also boosts the price competitiveness of Japan-made products abroad.



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