Toyota Motor unveiled a ?1 trillion ($6.3 billion) share buyback and lifted its profit outlook Tuesday as resilient hybrid demand and a weak yen helped make up for rising costs, tariffs and supply disruptions.
The world’s largest carmaker raised its operating profit outlook by more than 10% to ?3.4 trillion for the fiscal year through March. Analysts are projecting, on average, profit of ?3.9 trillion. Toyota’s stock recouped earlier losses but remained down 1.4% in afternoon trading in Tokyo.
Toyota has benefited from the enduring popularity in the U.S. of gas-electric hybrids, a technology it helped pioneer. This, along with the weak yen during the first half, helped provide a buffer from soaring raw material costs and supply chain disruptions triggered by the war in Iran, which has upended many of the region’s key shipping routes.
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