Japanese automaker Toyota Motor Corp. TM on Wednesday hiked its full-year operating income outlook by 400 billion yen ($2.62 billion) to 4,700 billion yen for the financial year ending March 2025.
Upbeat Forecast: The company now expects full-year sales revenue of 47,000 billion yen and a margin of 10%, up from its previous forecast of 9.3%.
The revised forecast reflects the company’s progress in strengthening earnings power and efforts to improve product competitiveness and value chain earnings, it said.
Weak Quarterly Results: The upbeat forecasts, however, follow a weak quarterly report. Toyota reported an operating income of 1.22 trillion yen for the three months through December, marking a drop of about 28% from the corresponding period last year, owing to a significant drop in operating income in Japan and North America.
Sales revenue in the period, however, rose marginally to 12.39 trillion yen.
Why It Matters: Toyota retained its position as the world's best-selling automaker in 2024 after reporting 10.8 million sales, marking a dip of 4% from a year ago.
The sales numbers include those of the company's Lexus brand as well as its subsidiaries Daihatsu and Hino. Daihatsu reported sales of 536,588 units worldwide in 2024 while Hino reported sales of 125,556 units.
German automaker Volkswagen Group, in comparison, sold only about 9 million vehicles last year.
Price Action: Toyota’s NYSE-listed shares are up 2.9% in pre-market trading. The stock stock closed at $187.56 on Tuesday, down 7.6% over the past year, according to data from Benzinga Pro.
(1 Japanese Yen = $0.0065)
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