- Title: JAPAN/FILE: Toyota pushes up profit forecast, despite problems in China
- Date: 5th November 2012
- Summary: BEIJING, CHINA (FILE - OCTOBER 10, 2012) (REUTERS) MAN WALKING THROUGH TOYOTA PARKING LOT TOYOTA LICENSE PLATE CHENGDU, SICHUAN PROVINCE, CHINA (FILE - SEPTEMBER 18, 2012) (REUTERS) PROTESTERS HOLDING BANNER READING: "DECLARE WAR ON JAPAN" AND CHANTING "DOWN WITH THE JAPANESE AND RETURN OUR DIAOYU ISLANDS" PROTESTERS MARCHING AND WAVING CHINESE FLAGS
- Embargoed: 20th November 2012 12:00
- Location: Japan
- Country: Japan
- Topics: Business,Economy
- Reuters ID: LVA3A1NWJ1YAPQVMY5U7E5BNNA90
- Story Text: Toyota raises its full-year net profit forecast despite lingering anti-Japanese sentiment in China.
Toyota Motor Corp raised its full-year net profit forecast to 9.7 billion dollars (780 billion yen) on Monday (November 5), even as it put the cost of recent anti-Japanese protests and a slowing economy in China, the world's biggest autos market, at lost sales of 200,000 cars.
Sales at Toyota and its two Chinese joint ventures almost halved in September and October amid often violent protests in a dispute over ownership of islets in the East China Sea, known as Senkaku in Japan and Diaoyu in China.
"We compiled the financial results on the assumption that there will be an impact of 200,000 vehicles in the second half of the year from October to next March," said executive vice president Ozawa Satoshi.
The company sold around 900,000 vehicles in China last year, but anti-Japanese sentiment stemming from the diplomatic spat between Asia's two largest economies is hitting the company's bottom line.
"We assume there will be a 30 billion yen impact to the net profit in our financial results," Ozawa said.
Toyota has found room to revise its forecasts higher as it traditionally gives more conservative earnings guidance and relies less heavily on China sales.
China accounts for around 12 percent of Toyota's sales, compared to Nissan's 27 percent and Honda's 20 percent.
The backlash in China against Japanese goods allowed Hyundai Motor and BMW to pick up market share.
Toyota increased its net profit forecast for the year to end-March, up 2.6 percent from its previous guidance.
July-September net profit more than trebled to 3.2 billion dollars (257.9 billion yen) on solid sales in North America and Southeast Asia, beating an average estimate of 228.8 billion yen from six analysts polled by Thomson Reuters.
In its biggest market, the United States, Toyota's sales rose 16 percent in October from a year ago, giving it and its Lexus luxury brand a 13.9 percent market share, up from 12.3 percent
Toyota and its group companies sold a total of 7.4 million vehicles worldwide in January-September, beating GM and Volkswagen to be the top selling carmaker.
Toyota was the world's biggest automaker from 2008 through 2010, and could this year regain top slot after recovering from a series of crises - from the global financial meltdown and damaging recalls to natural disasters and the China row.
Toyota on Monday trimmed its forecast for global sales in the year to end-March - excluding those at its Chinese joint ventures - to 8.75 million vehicles from a previous 8.8 million.
"The Chinese market is the world's biggest market. We will not change our thinking towards China and obviously, carry on making and introducing cars that will please the Chinese customer and contribute to the development of Chinese society," Ozawa reiterated.
As the global market evolves, Toyota is looking to strengthen its foothold in emerging markets, and plans to double its China sales to 1.8 million cars by 2015.
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