Toyota Motor Corp is set to forecast higher profit for the current financial year when the company reports its earnings this week, despite the pressure put on the automotive industry by rising prices and supply chain issues.
The Japanese firm will announce strong profit increases for the year to April 1st, giving confidence that the automaker will be able to sustain its strong performance through the current year.
The manufacturer has been aided by increased demand and a weak yen, helping it offset the losses incurred as a result of increased costs and logistical problems. The firm has also passed costs on to consumers by raising prices.
Analysts expect Toyota to forecast an 11% increase in operating profit for the current year to 3.36 trillion yen ($25.7 billion). Profit for the year just ended is believed to have increased 37% to 3.02 trillion yen.
The company reported an increase in both global production and sales in 2022, the first growth since the start of the Covid-19 pandemic. Whilst signs look promising, investors will still be monitoring the impact of rising commodities prices on the industry, as well as the performance of the yen.
In addition to rising commodities costs, lockdown measures implemented in China have caused disruption to supply lines that looks set to continue for some time.
Toyota will report results on Wednesday, with fellow Japanese automakers Nissan and Honda reporting on Thursday and Friday respectively. All three firms are expected to announce increased profits.