Toyota profits up despite chip shortage

Toyota raised its profit outlook on Thursday (November 4) as exchange rates played in its favour.

The Japanese automaker raised its full-year outlook for operating profit 12% to $24.5 billion - a six year high.

The company did say, though, that the value of profits earned abroad was inflated by a weaker yen.

Toyota also warned the global semiconductor shortage posed a risk to production plans.

Like most global carmakers, it has cut output this year due to the chip shortage.

The firm has already cut its yearly production target to 9 million vehicles.

And last month, Toyota slashed November output plans by as many as 150,000 vehicles.

While the chip shortage is a worry, the company still saw a big jump in earnings over the three months to the end of September.

Toyota posted a 48% jump in operating profits year-on-year to almost $6.6 billion - way ahead of forecasts.

Higher demand across major markets like China, Europe and the U.S. lifted sales.

Electric vehicles particularly showed signs of healthy growth.

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