Toyota raises forecast as it considers effects of weak yen and Trump pressure
Toyota’s revised operating-profit forecast is lower than analysts forecast as it weighs up the effects of yen weakness and Trump administration trade tension
Tokyo — Toyota raised its full-year operating profit forecast to lower than analysts’ estimates as it seeks a balance between the benefits of a weaker yen on exports of its Prius and Lexus models and the effect of rising trade tension under US President Donald Trump. The automotive group says operating profit will probably be ¥1.85-trillion ($16.4 billion) for the year to March, up from its previous forecast of ¥1.7-trillion yen but about 10% lower than analysts’ estimates. The group reported third-quarter operating profit declined 39%, missing consensus estimates. Even with the benefits of a weaker yen boosting repatriated profits, Toyota must contend with possible trade tension after Trump criticised its plans to build a Corolla plant in Mexico. The attack broadened with the US leader rebuking Japan for sending the US hundreds of thousands of cars in what he said were "the biggest ships I’ve ever seen" while US car makers struggle to sell vehicles in Japan. ‘It’s difficult to give...
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