Toyota Raises Annual Profit Forecast 15% to 3.9 Trillion Yen

Toyota raised its full-year operating-profit forecast by 15% to 3.9 trillion yen after reporting a 34% year-over-year increase in quarterly profit, as hybrid demand and a weaker yen supported results despite falling sales in China and the Middle East. Operating profit for the July-September quarter reached 1.13 trillion yen, Toyota said. The result exceeded the median estimate of 992 billion yen from nine analysts surveyed by LSEG. It was the company’s first quarterly profit increase in six quarters, according to reports of its results. Toyota attributed support for its outlook to demand for hybrids and the weaker yen. The company’s earnings also faced pressure from weaker sales in China and the Middle East, as well as higher material costs. Chief Accounting Officer Takanori Azuma said sales efforts and cost reductions were helping offset pressure from the Middle East situation and rising materials prices. The latest results extend Toyota’s focus on petrol-electric hybrids, a strategy that contrasts with automakers that concentrated more heavily on fully electric vehicles. Toyota has said the approach helps it meet demand for fuel-efficient vehicles. In the quarter, however,...