Toyota Raises Annual Profit Forecast on Hybrid Demand, Plans Up to $89 Billion in Shareholder Returns
The automaker raised its operating profit forecast to 3.9 trillion yen and outlined an 11 trillion to 14 trillion yen shareholder return plan through March 2031.
Toyota raised its annual operating profit forecast Thursday as demand for hybrid vehicles supported earnings, while outlining plans to return as much as 14 trillion yen, about $89 billion, to shareholders over five years.
The world's largest automaker now forecasts operating income of 3.9 trillion yen for the fiscal year ending March 31, 2027, up from its previous forecast of 3.4 trillion yen. That is an increase of about 15% from the earlier outlook, not a 15% increase in reported annual profit.
Toyota's investor presentation set out a range of 11 trillion to 14 trillion yen for shareholder returns over the five years ending March 2031, compared with 7 trillion yen in the preceding five years. It also outlined 22 trillion yen for capital expenditures and research and development.
For April through September, Toyota reported revenue of 26.962 trillion yen, up 9.5%, and operating income of 2.1911 trillion yen, compared with 2.0056 trillion yen a year earlier. Consolidated vehicle sales edged down to about 4.758 million.
Toyota said resilient vehicle sales were led by hybrids and that improvement efforts helped it raise its full-year forecast. CNBC reported a 34% increase in operating income for the July-September quarter and a 17% jump in Toyota shares after the announcement.
The company also increased its share repurchase authorization by 300 billion yen, taking the fiscal-year total to 1.3 trillion yen. Its full-year dividend forecast remained 100 yen per share, compared with 95 yen in the previous fiscal year.