Toyota increased its annual profit target relying in stronger sales in the US and a weaker yen.
Toyota, the world’s best-selling car maker, delivered a record number of vehicles in 2012, but said it will not build any plants for the next three years, although its sales increased. Toyota increased the net profit expectation for the fiscal year ending March, by more than 10% to $9.3 billion, due to strong sales of the Camry and other models in the US.
“If the current weak yen trend continues, the company’s profit will likely sharply rise for the next fiscal year as well,” said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management. “If a recovery in the U.S. economy serves as a tailwind, its stock price has more upside.”
Toyota announced it plans to ship 2.2 million units in the US this year, an increase of almost 6% compared with 2012. Analysts expect Toyota to benefit the most from the weakening yen, compared with Nissan and Honda, as it has the highest ratio of production in Japan and exports more than half of it.
This year Toyota aims at selling 8.9 million vehicles globally and 9.91 million if it includes partners Daihatsu and Hino Motors. In 2012 the automaker sold 8.72 million units and its group-wide sales hit a record 9.75 million units.