Toyota blames ‘unprecedented’ costs for pessimistic outlook

A weakened yen is not expected to deliver a “major” lift to the automaker

Toyota is predicting higher vehicle sales for the current fiscal year, with a target of 10.7 million units, compared with 9.5 million for the period that ended March.

Toyota forecast a 20% decline in operating profit for the current fiscal year despite posting robust annual car sales, citing an “unprecedented” rise in costs for logistics and raw materials that are negating the benefits of a depreciated yen.

The world’s largest automaker forecast an operating profit of 2.4 trillion yen (€17.5bn) for the fiscal year through March, short of 3 trillion yen posted during the just-ended period, and well down on analysts’ average projection for 3.4 trillion yen. Shares fell by more than 4% yesterday, the most in two months.