Toyota expects to do good business in the coming period. The Japanese car manufacturer has more than doubled its profit forecast for the coming fiscal year. This is mainly due to the recovery in demand in China.
Despite the fact that Toyota’s profit decreased by 24 percent from last year to € 4.1 billion in the past quarter, the Japanese are positive about what the rest of the year will bring. According to CFO Kenta Kon, a drastic recovery has been visible in recent times, he says during an online press briefing to, among others Automotive News. Toyota previously predicted a profit of more than € 4 billion, but the brand has adjusted that profit forecast to € 10.5 billion. That is more than twice as much.
Given the profit that the group booked in the past quarter, it is not surprising that Toyota has adjusted its profit forecast upwards. The quarterly profit exceeds previously forecast profit forecast for the full year. Nevertheless, analysts are cautious, in particular due to the rising appreciation of the yen against the dollar and the recent rebound of the corona virus. However, Toyota is targeting the Chinese market in particular for the recovery. The brand is not alone in this. Daimler previously adjusted its profit forecast upwards, partly due to good results in China and an intensive austerity program.