Carmakers lift profit forecasts

Toyota has nearly doubled its full-year operating profit forecast, as vehicle sales and production recovers quicker from the coronavirus pandemic than expected.

The marque expects a net profit of ¥1.42 trillion (NZ$20.2 billion) for the year to March 2021, up from a previous estimate of ¥730b. Full-year sales are also tipped to increase from a previous prediction of ¥24tr to ¥26tr.

However, Toyota’s ¥629.4b net profit for the first half is still down 45.3 per cent from the same period a year ago, reports the Japan Times.

Signs of recovery from the pandemic emerged in the second quarter, with bottom-line profit at ¥470.5b against ¥158.8b in the previous quarter.

Kenta Kon, chief operating officer, says: “For the last half of the year, we will be carefully monitoring the pandemic situation including lockdown.

“We can’t fully predict what’s ahead for the full year. We want to carefully monitor the coronavirus situation.”

Toyota also reports global production and sales hit record highs for September, marking the first gains in nine months.

Honda looking up

Honda has also reported its profits rose 23 per cent in the July to September period, increasing from ¥196.5b a year ago to ¥240.9b.

The carmaker says these figures were helped by aggressive cost cuts that involved a “fundamental review” of its operations. 

Quarterly sales slipped to ¥3.65tr from ¥3.73tr in the same period a year earlier.

Honda has raised its profit forecast for the fiscal year through March 2021 to ¥390b from an earlier projection for ¥165b, reports Reuters.