Toyoda Gosei revises up full-year forecast on rising customer production

Tokyo – Toyoda Gosei (TG) has revised up its full-year forecast on increased production volumes among major customers and the impact of weaker Yen.

The Japanese automotive parts supplier now expects operating profit to come at Yen59 billion (€370 million), up 47% from its Yen40 billion estimate in April.

Full-year sales are also expected to come in at just over Yen1,000 billion, up 11% compared to the April estimate, the group announced 31 Oct.

The revision followed a strong first half performance: TG reporting a 15% year-on-year increase in sales to Yen523 billion for the six months to end of September.

TG linked the higher sales mainly to an increase in production by customers primarily in Japan and the Americas.

Operating profit came in at ¥33.6 billion, up 174.6% compared to last year and driven by the effects of increased sales and rationalisation efforts.

In terms of geographical segments, TG saw Japan return to 'black', posting segment profit of Yen8.1 billion against a loss of Yen2.2 billion reported in the first half of 2022.

Sales were also up 17.6% in the region at Yen216 billion, due to higher production rates by costumers.

In Europe and Africa, TG also reported a slight profit of Yen400 million, against a loss of Yen900 million last year, with sales up 17.3% year-onp-year to Yen15.6 billion.

In the Americas, revenue lifted 21.6% year-on-year to Yen191.5 billion, due to an increase in production by customers, while profits were up 142% at Yen14.5 billion.

Revenues in Asia rose by just 4.6% year-on-year to Yen143.0 billion on higher customer production.

TG's profits in Asia grew by nearly 9% year-on-year to Yen10.5 billion, on strong sales in India and despite reduced sales in China.