Toyota Sees Smaller-Than-Expected Profit Rise This Year
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Toyota Motor forecast on Wednesday a 3.3 percent rise in operating profit for the current year due to cost reduction measures and changes to its depreciation methods.
Japan’s largest automaker expects profit to rise to 2.55 trillion yen ($23.20 billion) in the year to March 2020, slightly lower than the 2.61 trillion yen average of 23 analyst estimates compiled by Refinitiv.
Operating profit was 2.47 trillion yen for the year ended March, below the average 2.51 trillion yen estimate of analysts.
The automaker also forecasts global group retail sales of 10.74 million vehicles for the current year, compared with 10.6 million in the previous year.
Toyota’s profit forecast is based on the assumption that the yen will trade around 110 to the U.S. dollar in the current financial year, compared with 111 yen in the year just ended.
Questions & Answers
Q.What is Toyota's predicted operating profit for the current financial year?
What is Toyota's predicted operating profit for the current financial year?
Toyota anticipates an operating profit of 2.55 trillion yen for the year ending March 2020. This forecast is a 3.3 percent rise from the previous year's operating profit, attributed to cost reduction and depreciation method changes.
Q.How does Toyota's profit forecast compare to analysts' expectations?
How does Toyota's profit forecast compare to analysts' expectations?
Toyota's forecast of 2.55 trillion yen is slightly lower than the average analyst estimate. Analysts had projected a higher operating profit of 2.61 trillion yen, based on 23 estimates compiled by Refinitiv.
Q.What exchange rate is Toyota using for its current year financial predictions?
What exchange rate is Toyota using for its current year financial predictions?
Toyota's profit forecast for the current financial year assumes an exchange rate of 110 yen to the U.S. Dollar. This is a slight change from the 111 yen to the dollar used for the financial year that just concluded.
Q.What is Toyota's global retail sales target for the current year?
What is Toyota's global retail sales target for the current year?
Toyota expects to sell 10.74 million vehicles globally as a group in the current financial year. This represents an increase from the 10.6 million vehicles sold in the previous year.