Japan’s major automaker toyota has raised its annual forecast thanks to the yen’s weakness, but is worried about possible consequences of the rapid spread of the new coronavirus.
As the volkswagen rival announced on thursday, the net profit at the balance sheet date 31. March amount to 2.35 billion yen (19.4 billion euros). However, the forecast does not take into account the effects of the virus epidemic, he said. Previously, japan’s industry leader had assumed 2.15 billion yen. Toyota expects yen to weaken, improving group’s competitiveness in foreign markets. A weak yen makes products from japan more affordable on the world market.
Toyota now expects to average 108 yen to the dollar and 121 yen to the euro for the full year, compared to its earlier forecast of an average of 107 yen to the dollar and 118 yen to the euro. The company has no choice but to keep a close eye on current developments, it said, referring to the corona virus. Toyota decided last week to postpone the start of operations at four plants in china after the chinese new year. This is because of the outbreak of the virus and because of an order from the authorities.
It was still not possible to decide when the plants in china could be restarted, explained toyota manager masayoshi shirayanagi. The company is in the process of assessing whether the cutback in parts procurement from china will affect production in other markets.
Even after the new forecast, sales at the balance sheet date were expected to be 29.5 billion yen, as previously expected, it was announced. In the first nine months of the current financial year, net income rose by 41.4 percent to 2.01 billion yen. Sales increased by 1.6 percent to 22.83 billion yen. In the current fiscal year, toyota, which includes the small car specialist daihatsu and the commercial vehicle manufacturer hino motors, plans to sell 10.73 million vehicles worldwide, 30,000 more than previously planned.