Toyota Motor Corp has raised its full-year forecast for operating profit by 6 percent as it expected efforts to scrimp and save would go further to curb the negative impact of a strong yen than previously anticipated.Hayley Platt reports.
Toyota has raised its full-year forecast despite a dent from a strong yen Its operating profit took a beating in the second quarter - falling 43 percent. But Toyota says it will scrimp and save to mitigate the currency's impact - raising its operating profit forecast by 6 percent. SOUNDBITE (English) CHIEF ECONOMIST, WORLD FIRST, JEREMY COOK, SAYING: "We have seen a very, very large strengthening of the Japanese Yen over the course of the past two years or so. Dollar/Yen used to be as high as 1.20. It spent some time below 100 over the course of the past 6 months or so. The strengthening of yen for such an export reliant economy is obviously going to start pinching on profits." Sales have slowed in North America - its largest market. Toyota and rivals Nissan and Honda are struggling to keep up with the trend for larger models thanks to cheaper fuel. Toyota plans to jump on the battery bandwagon. It's been investing heavily in hydrogen fuel-cell vehicles. And says it's warming to the idea of producing more long range electric vehicles. SOUNDBITE (English) CHIEF ECONOMIST, WORLD FIRST, JEREMY COOK, SAYING: "The car industry and the car market is also starting to slow. It's not going to be more sales it seems that drives the car market, it's going to be innovation within those sales." Despite the rosier outlook - operating profit for the year - even at the revised level - will still be its lowest since 2013. And 40 percent lower than last year's all time high.