Toyota Shares Jump on $12 bln Profit Plan

Shares of Toyota Motor rose on Wednesday on a report the Japanese automaker aims to boost operating profit to over $12 billion within three years.

Toyota looks to strengthen its ability to overcome a stronger yen and will step up cost-reduction efforts, the Nikkei business daily reported on Wednesday.

By achieving a 5 percent or higher operating profit margin – even if the yen is as strong as 85 yen to the dollar – the world’s No.1 automaker eyes sustained growth.

President Akio Toyoda is expected to announce the goals on Wednesday in Toyota’s „global vision“ statement, a new long-term business guideline.

The Nikkei said Toyota will sell strategic vehicles developed by taking into account road conditions and consumer tastes in specific regions.

The company also intends to develop advanced production technologies and increase overseas procurement of major components to drive down costs.

Toyota forecasts group operating profit near $6 billion in the year ending this month, based on an exchange rate of 86 yen to the dollar, while its operating margin is seen at 2.9 percent.

Foto: NTD