TOKYO (AP) – Toyota raised its annual earnings forecast after posting a 23 percent jump in quarterly profit Wednesday as a favorable exchange rate added to the momentum of the Japanese automaker’s sales growth.
Toyota Motor Corp.’s fiscal second quarter profit was a better-than-expected 539 billion yen ($4.7 billion), up from 438 billion yen the same period the previous year. Analysts surveyed by FactSet had expected about 500 billion yen ($4.4) in quarterly profit
Quarterly sales grew 4 percent to 6.55 trillion yen ($58 billion) as a weak yen boosted the value of overseas revenue.
The dollar was trading at about 100 yen last year, but has soared lately, trading Wednesday at about 114 yen. Toyota is expecting the dollar to average 104 yen for the fiscal year.
Toyota, which makes the Prius hybrid, Camry sedan and Lexus luxury model, said the favorable exchange rate added 40 billion yen ($350 million) to operating profit last quarter.