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The Japanese automotive giant Toyota has revised upward its forecast for the whole of Tuesday on Tuesday, posting a net profit up 16% for the six months ended September, thanks to the global sales stability and cost reduction efforts.
The manufacturer of the Camry sedan and the Prius Hybrid has revised up its estimated net profit to 2,300 billion yen ($ 20.3 billion) from its previous estimate of 2,200 billion yen for the year. year ended in March 2019, thanks to weak yen.
But even though the firm, which also owns the Lexus luxury brand, was meeting these expectations, profits would still be below the record of 2.49 billion yen recorded the previous year.
Between April and September, Toyota's net profit rose 16 percent to 1.24 trillion yen, 10 percent below analysts' forecasts.
Managing Director Masayoshi Shirayanagi said in a statement that the company "is making steady progress" in its efforts to cut costs.
First-half revenue increased 3.4% to 14.7 trillion yen, thanks to stable vehicle sales in North America, Europe, and Asia.
"As a result of our cost reduction efforts, Toyota is delivering strong results so far this year," said Satoru Takada, an analyst at TIW, a research and consulting firm based in Tokyo.
Japanese automakers, however, remain nervous about US tariffs, even though Washington's immediate action has been delayed for the time being.
"Trade disputes still weigh on the Japanese auto industry," Takada told AFP.
"Immediate fears of additional tariffs on Japanese auto exports have been postponed for the moment, but they could be revived according to the US-Japan trade negotiations," he said.
Toyota warned that the cost of an imported vehicle would increase by $ 6,000 if the United States imposed a 25% tariff on cars and parts imported from abroad.
In September, Donald Trump and Japanese Prime Minister Shinzo Abe announced an agreement to begin negotiations for a trade agreement.
The two leaders also agreed that the United States would not impose additional tariffs on cars manufactured in Japan as long as bilateral negotiations continue.
"Japanese automakers are also preparing for the impact of trade disputes between the United States and other major economies," Takada said.
Last week, Honda Motor also revised up its annual forecast, with first-half profits up over 19% on good motorcycle sales in Asia.
The third-largest Japanese automaker is now forecasting net profit of 675 billion yen for the year, down from last year but up from last quarter's forecast.
Their rival Nissan Motor is expected to announce its results for the first half on Thursday.
Toyota profits exceed forecasts
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