Toyota Motor Corporation raised its full-year operating profit forecast by over 10% to ¥3.4 trillion, citing benefits from a weaker yen and resilient demand for its hybrid vehicles. The revision came despite a challenging quarter where operating profit fell for the fifth consecutive quarter, impacted by slumping sales in China and disruptions from the conflict in Iran.
Alongside the upgraded guidance, the automaker announced a significant share buyback program of up to ¥1 trillion ($6.3 billion), equivalent to 4.2% of its outstanding shares. Despite the positive forecast and capital return plan, Toyota's shares closed down 1.5% in Tokyo, as investors weighed the ongoing sales challenges and rising costs against the favorable currency effects.