TOKYO: Toyota Motor lifted its full-year profit forecast by 10 percent on Tuesday after posting its best quarterly operating profit in two years, boosted by a weaker yen and strong sales at home.
Japan’s biggest automaker now expects operating profit to increase 10 percent on the year to ¥2.2 trillion, from ¥1.99 trillion a year earlier and marking an upgrade from its previous forecast of ¥2 trillion.
It expects net profit to come in at ¥2.4 trillion, up from a previous forecast for ¥1.95 trillion and on track for a record high.
For the third quarter, Toyota posted ¥673.6 billion in operating profit for October-December, a 54 percent jump from a year earlier. The result exceeded a mean estimate of ¥527.22 billion taken from 11 analysts polled by Thomson Reuters, and was its highest since October-December 2015.
Operating profit in Japan more than doubled as vehicle sales rose at home, while the automaker posted lower sales in North America, its biggest market, where it is struggling with heavy discounting as it tries to produce and sell larger vehicles.
Toyota sold 2.63 million vehicles globally in October-December, up from 2.28 million a year prior. Sales in Japan rose 3 percent, while sales North America fell to 735,000 from 745,000 units. Sales in Europe rose 1.7 percent.
Operating profit in North America tumbled 53.1 percent. Toyota has been struggling with rising marketing costs in the region amid steep discounting among automakers trying to sell more cars in the slowing US market.
Toyota has had a bumpy ride in the US, its biggest market where it trails only General Motors and Ford Motor in terms of sales, as automakers continue to angle for higher market share as overall sales retreat from a record high hit in 2016.
Profitability in the US market is key for Toyota to help generate funds as it invests heavily in new technologies including self-driving functions, electric cars and new mobility services.
As US drivers continue to gravitate toward larger pick-up trucks and SUVs over sedans and hatchbacks, Toyota, best known for its Camry and Corolla sedans, has been scrambling to shift more production from cars to trucks.
Meanwhile, it has been selling its sedans at hefty discounts for much of 2017 to bolster demand for models like the Camry, while also raising incentives on its SUVs and trucks to remain competitive in the US market.
This has lifted overall marketing costs per vehicle by 10 percent in 2017 from 2016, according to figures from Autodata.
Toyota lifts full-year profit outlook after best quarterly performance in 2 years
Toyota lifts full-year profit outlook after best quarterly performance in 2 years
Saudi Arabia opens 3rd round of Exploration Empowerment Program
RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, has opened applications for the third round of the Exploration Empowerment Program, part of ongoing efforts to accelerate mineral exploration in the Kingdom, reduce early-stage investment risks, and attract high-quality investment from local and international mining companies.
The third round of the Exploration Empowerment Program offers a comprehensive support package targeting exploration companies and mineral prospecting license holders.
The initiative aims to lower investment risks for projects and support a faster transition from prospecting to development.
"The program provides coverage of up to 70 percent of the total salaries of Saudi technical staff, such as geologists, during the first two years, increasing to 100 percent thereafter, in line with program requirements.
This support aims to develop talent, build national capabilities in mineral exploration, promote job localization, and facilitate the transfer of geological knowledge.
The application for the third round opened on Jan. 14, allowing participants to benefit from the Kingdom’s attractive investment environment, its stable legal framework, and streamlined regulatory structures, as well as integrated infrastructure that supports the transition from mineral resources to operational mines.
The ministry has set the timeline for the third round, with the application period running from Jan. 14 to March 31.
This will be followed by the evaluation, approval, and signing of agreements from April 1 to May 31, with the eligible projects set to be announced between June 1 and July 31 of the same year.
The program stages include submitting exploration data during the reimbursement and payment phase from Sept. 1 to Nov. 30, followed by technical and financial verification of work programs and approval of the disbursement of support funds in January 2027.
The exploration data will then be published on the National Geological Database in April 2027.
The ministry emphasized that the EEP focuses on supporting the exploration of strategically important minerals with national priority. It also contributes to enhancing geological knowledge by providing up-to-date data that meets international standards, helping investors make informed decisions and supporting the growth of national companies and local supply chains.
The ministry urged companies to apply early to benefit from the program’s third round, which coincided with the fifth edition of the International Mining Conference, which was held from Jan. 13 to 15.
