Toyoda Gosei revises up earnings forecast on stronger automotive production

Tokyo – Toyoda Gosei has revised up its full year revenue and earnings forecasts for the year ending 31 March, on stronger production volumes by its customers.

The group now expects operating profit to come in at Yen60 billion (€340 million), up 9% compared to its previous estimate and on a par with the previous fiscal year results.

Sales forecast for the full year was also adjusted slightly upwards, at 0.5% to Yen1,050 billion, in line with the previous year’s revenue, TG announced 31 Oct.

The Japanese automotive parts supplier posted a 3.8% year-on-year increase in revenue for the six months ended 30 Sept to Yen535.6 billion, owing mainly to an increase in customer production volume.

Despite the impact of US tariffs, operating profit was up 14% year-on-year at Yen32.9 billion, due to higher volumes and cost improvement.

In Japan, revenue grew 6.4% to Yen222.4 billion as customers increased production volume.

Operating profit for the region increased 55% to Yen7.6 billion due to cost improvement.

In Americas, sales increased 3.3% year-over-year to Yen207.4 billion on higher automotive production, but operating profit fell 1.6% to Yen14 billion, due chiefly to the impact of tariffs.

In Europe and Africa, Toyoda Gosei posted a 34% decline in operating profit to Yen900 million, as lower volumes led to a 5.7% decline in sales to Yen15.6 billion.

In China, revenue was down 10.2% at Yen42.4 billion as customers reduced car production, but operating profit grew significantly to Yen800 million, from Yen100 million, helped by cost improvement and reduced fixed costs.

Asia, excluding China, posted a 6.6% increase in sales to Yen70 billion as car production grew, improving earnings by 13.4% to Yen6.6 billion.

India continued to grow with earnings up 40.4% year-on-year to Yen2.5 billion, on 15.3% higher sales of Yen23.5 billion.