TOKYO (Bloomberg) -- Toyota Motor Corp. raised its full-year profit forecast as sales in Asia grew more than estimated, outweighing the effect of a stronger yen.
Net income may total 350 billion yen ($4.3 billion) for the 12 months ending March 31, compared with an earlier estimate of 340 billion yen, the company said in a statement Friday. Net income in the fiscal second quarter rose to 98.7 billion yen from 21.8 billion yen a year earlier.
Toyota has struggled to rebuild its reputation after recalls that began late last year, but profit in the three months ended Sept. 30 surged from a year earlier after sales gained by about 90,000 vehicles in Japan, 62,000 in other Asian markets and 58,000 in emerging markets including Latin America, Africa and the Middle East.
Sales plunged by 41,000 vehicles in Europe and 3,000 in North America in the second quarter, Toyota said.
“Toyota's double-digit sales growth in Japan, China and Southeast Asia is driving profit gains,” said Koji Endo, an auto analyst at Advanced Research Japan in Tokyo.
Toyota follows Honda Motor Co. and Nissan Motor Co. in boosting earnings forecasts as a recovering global economy spurs sales. That's helping President Akio Toyoda, grandson of the company's founder, withstand the yen's advance to near a 15-year high against the U.S. dollar and the lingering effects of record vehicle recalls for defects tied to unintended acceleration.