Toyota Motor Corp. plans to maintain its full-year operating income forecast at 4.3 trillion yen ($29.2 billion) despite headwinds from production disruptions and increased investments, signaling the world’s largest automaker’s push to strengthen its long-term competitiveness.
The Japanese carmaker’s operating profit dropped 3.7% to 2.46 trillion yen in the first half ended September 30, as production halts related to certification issues and increased spending offset favorable currency effects. The results were supported by cost reduction efforts and stronger value chain earnings.
Toyota is expanding its investment in human resources and growth areas to 830 billion yen for the full year, up from an initial plan, even as operating income is projected to decline 20% from the previous year’s record 5.35 trillion yen. About 510 billion yen will go toward human resources, with 320 billion yen allocated to future growth initiatives.
The company expects global retail sales to reach 10.1 million vehicles this fiscal year, down from an earlier forecast of 10.4 million units. The reduction reflects first-half production challenges, though Toyota aims to return to a 10-million-unit annual production pace in the second half.
“We are strengthening our foundations and improving our business base through participation of all employees,” CFO Yoichi Miyazaki said. The company will focus on restoring production levels, controlling incentives, and expanding value chain earnings to maintain profitability.
Toyota kept its full-year dividend forecast at 90 yen per share, up from 75 yen last year, reflecting its policy of stable dividend increases. The interim dividend will rise by 10 yen to 40 yen per share.
