As we previously reported, now that official figures are out, Toyota sets to raise its full-year profit forecast by 13 percent as the weaker yen boosted earnings from Prius and Lexus vehicles exported from Japan.
Net income will probably rise to 1.67 trillion yen ($16.9 billion) in the year ending March 31, the Toyota City, Japan-based carmaker said in a statement today. That compares with the previous forecast of 1.48 trillion yen and the 1.82-trillion-yen average of 22 analyst estimates.
Toyota earned more profit than GM and Volkswagen AG combined last quarter, helping restore confidence in the idea that Prime Minister Shinzo Abe’s policies, which have helped the yen weaken against every major currency in the past year, are giving Japanese exporters an edge.
“Toyota is the company that’s benefited most from Abenomics because of the currency,” said Takaki Nakanishi, founder of industry research firm Nakanishi Research Institute and the top ranked auto analyst by Institutional Investor magazine. “The prime minister will probably say this is a win for Abenomics, that his direction is right and that Toyota’s earnings are good proof.”
Toyota rose 2.9 % as of 9:05 a.m in Frankfurt trading, headed for the biggest gain since Aug. 22. The automaker gained 0.5 % to close at 6,350 yen in Tokyo before reporting results, compared with the 0.8 % advance by the Nikkei 225 Stock Average. The stock has gained 59 % this year.
Toyota’s results come amid waning optimism over Japanese carmakers. Last week, Honda reported second-quarter earnings that missed analysts’ estimates and Nissan cut its annual profit forecast. The yen is also becoming decreasingly volatile in recent months, with the exchange rate stabilizing to between 97 and 99 against the dollar.