Toyota Motor Co. (TM - Get Report) posted better-than-expected first quarter earnings Friday and boosted its full-year profit outlook by 15% as the world's second-largest carmaker adjusted its foreign exchange benchmarks.
Toyota said after the close of Tokyo trading that it now sees operating profits of around ¥1.85 trillion ($16.8 billion) for its fiscal year, which ends on March 31, compared to a previous forecast of ¥1.6 trillion. Toyota also said it sees full-year revenue of ¥28.5 trillion and net income of ¥1.75 for the year as it adjusted its dollar/yen exchange rate assumptions to 110 from 105 and its euro/yen forecast to 124 from 115.
For the three months ending in June, Toyota posted operating profit of ¥574.2 billion, down 10.6% from the same period last year but ahead of the Thomson Reuters estimate of ¥538.3 billion. Toyota shifted 2.59 million cars over its fiscal first quarter, up from 2.529 million last year, taking revenue 7% higher to just over ¥7 billion.
Interestingly, despite the dollar weakness, which has lifted the value of the yen against the greenback by some 4% since early June, Toyota was the only Japanese automaker to increase its U.S. sales last month, thanks in part to the popularity of its RAV4 SUV cross-over model.
Toyota shares closed at ¥6,216 each in Tokyo after falling 0.14% on the session and extending their year-to-date decline past 9.6% compared to a 4.38% gain for the Nikkei 225 benchmark.
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