Toyota unveils $1.8 billion share buyback through March 2020

Toyota’s second quarter profit profits have been 9 analysts’s estimate as per Refinitive data.

On Thursday, Toyota Motor Corp unveiled a $1.8 billion share buyback after reporting a more-than-expected quarterly profits, on the back of improved global sales.

Toyota Motor Corp, Japan’s biggest automaker, posted a 14% rise in its operating profit to $6 billion (662.3 billion yen) for the three months ended September, up from 579.1 billion yen a year ago.

It was Toyota’s strongest second-quarter earnings since 2015.

According to Refinitiv data, Toyota’s profit beat analysts’ average forecast of 592.3 billion yen.

The Japanese carmaker sold 2.75 million vehicles globally during the quarter, up from 2.18 million units a year ago. Sales in North America, its biggest market, rose by 5.6%, while those in Asia, which includes China, rose by 3.4%.

Operating profit in North America, more than doubled during the quarter as benefits of measures to cut vehicle discounts filtered through.

“New models of the RAV4 and the Corolla, as well as last year’s Camry, have been well received in North America, so we’ve been able to lower incentives,” said Toyota’s Operating Officer Kenta Kon.

Flush with cash, Toyota said it would buyback shares worth up to $1.8 billion from its common stock by the end of March 2020.

The carmaker has maintained its full-year operating profit forecast for in the year.

Toyota stated, it expects a strengthening yen to weigh on its bottom line.

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