Toyota raises profit outlook despite slowing sales

Toyota Motor Corporation on Monday raised its full-year group operating profit outlook to 1.05 trillion yen (13 billion U.S. dollars), from 1 trillion yen following robust earnings from the last quarter and despite slowing sales in China.

The Japan's largest manufacturer said its earnings from the last quarter leapt to 143.7 billion yen (1.8 billion U.S. dollars), with sales totaling 4.52 million units in the recording period, up 1.49 million compared to the same period a year earlier.

The Aichi Prefecture-based automaker noted that sales in Asia had been robust, particularly in countries like Thailand and Indonesia, but said it expects sales in China during the second half ending March to drop considerably due to a consumer backlash following a territorial dispute between the two nations.

Toyota said it expects to sell some 200,000 less vehicles than previously expected in China, which is the equivalent of 30 billion yen.

Based on this, Executive Vice President Satoshi Ozawa said in a news conference on Monday that the Asia's largest automaker had downwardly revised its total sales for the year by 50,000 units to 8.75 million units.

With other automakers like Honda Motor forced to slash their forecasts based on the impact of Japan's territorial row with China, which escalated following Tokyo's attempts to "nationalize" some of the Diaoyu Islands in the East China Sea on Sept. 15, Toyota relying on China for only 12 percent of its sales has protected the auto giant somewhat.

By comparison, Honda, who cut its operating forecast by one fifth last week, is reliant on China for 20 percent of sales and sales in China account for 27 percent of Nissan Motor's total.

Separately, Mazda Motor Corp. announced on Monday that its new car sales in China had slumped by 45 percent in October from a year earlier, due to deteriorating ties between Japan and China.

Toyota, however, has benefited from government subsidies for environmentally friendly cars, which helped drive up domestic sales of its flagship Prius hybrid, the automaker said on Monday, adding that cost-saving endeavors had helped the firm save 160 billion yen, making Japan its most profitable region globally.

The firm said that sales of its models in North American markets had been brisk, with the automaker adding 571,424 units to total 1.26 million units sold there in the six-month period through September.

Toyota announced its group net profit had surged in the half to 548.27 billion yen from 81.58 billion yen a year earlier, with a group operating profit of 693.75 billion yen.

Sales in Japan rising by 394,867 units to 1.19 million units helped push the automaker's consolidated sales up by 36 percent 10. 91 trillion yen, Toyota also said. (1 U.S. dollar equals 80.5 yen)