Toy­ota fore­casts record profit on Trump tax cut

The Pak Banker - - FRONT PAGE - TOKYO -AFP

Toy­ota Mo­tor Corp. pre­dicted a record profit this fis­cal year helped in part by Pres­i­dent Don­ald Trump's tax cuts and surg­ing sales of the up­dated Camry sedan and RAV4 sport-util­ity ve­hi­cle in the US

A re­duc­tion in ex­penses through cost cuts and a fa­vor­able for­eign ex­change en­vi­ron­ment is also help­ing the car­maker lift its an­nual net in­come fore­cast to a record 2.4 tril­lion yen ($22 bil­lion), beat­ing an­a­lyst es­ti­mates. Asia's big­gest au­tomaker also boosted its pro­jec­tion for ve­hi­cle sales.

Pres­i­dent Trump's tax cuts have helped a record num­ber of com­pa­nies to raise their profit guid­ance, ac­cord­ing to strate­gists at JPMor­gan Chase & Co. Toy­ota, which is set­ting up a new plant in the US, said it would gain about 292 bil­lion yen from the tax re­forms. Toy­ota's Ja­panese ri­val Honda Mo­tor Co. also last week raised its profit fore­cast for the year be­cause of the re­duc­tion in tax rates.

Toy­ota said last year it's sav­ing costs through mea­sures in­clud­ing the con­tin­ued roll out of a new man­u­fac­tur­ing process. The money spared will help bol­ster spend­ing on re­search and de­vel­op­ment to a record 1.06 tril­lion yen this year as pres­i­dent Akio Toy­oda pushes the com­pany deeper into new elec­tri­fied pow­er­trains and ar­ti­fi­cial in­tel­li­gence, ar­eas he says the au­tomaker needs to lead.

Amer­ica's love for SUVs also re­ver­ber­ated through Toy­ota's earn­ings. While boost­ing sales of the RAV4 SUV, Toy­ota also re­tained its sta­tus as the maker of Amer­ica's best-sell­ing car last year with the re­designed Camry. The Ja­panese car­maker cap­tured 14.5% of the US mar­ket in Jan­uary, se­cond only to Gen­eral Mo­tors Co.'s 17.2%,

ac­cord­ing to re­searcher Au­to­data.

Toy­ota raised its fore­cast for North Amer­i­can sales this fis­cal year to 2.81 mil­lion ve­hi­cles from 2.79 mil­lion. That made up for slight

down­ward re­vi­sions

Ja­pan and Europe.

Toy­ota projects re­search and de­vel­op­ment spend­ing at a record 1.06 tril­lion yen this fis­cal year, even

for

sales

in

as it cuts costs in other ar­eas. In De­cem­ber, the car­maker an­nounced plans to have at least 10 bat­tery­elec­tric ve­hi­cles in its lineup by the early 2020s, from zero now.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.