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Toyota Uncovers $1.8 Billion Share Buyback

On Thursday, Toyota Motor Corp disclosed its plans for a $1.8 billion share buyback. This was after the firm reported a more-than-expected quarterly profit on better global sales.

Japan’s most significant auto company displayed a 14% growth in operating profit to 662.3 billion yen ($6 billion) for the three months which ended September, from 579.1 billion yen a year ago.

The upsurge was Toyota’s most substantial second-quarter earnings since 2015.

Meanwhile, data showed that the profit beat an average projection of 592.3 billion yen. This was based on estimates from nine analysts.

A year ago, the automaker sold 2.75 million vehicles worldwide during the quarter. It was up around 2.18 million units.

Moreover, in North America, Toyota’s largest market grew by 5.6%. Also, sales in Asia, which comprise of China, climbed 3.4%.

Over the past two years, the operating profit in North America has been a sensitive position for Toyota.

After that, it has doubled during the quarter as benefits of methods to cut vehicle discounts streamed through.

Improvement Of Sales In China

At a briefing, Operating Officer Kenta Kon told reporters, “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.”

Elsewhere, the carmaker has also been developing sales in China, the world’s biggest auto market.

Here, demand has been stable for its newly updated models of the Levin, Avalon, and Camry sedans, in conjunction with the ES sedan under its luxury Lexus brand.

In the first ten months of 2019, sales in China grew 7.2%, beating an overall softness in the country. It is also getting ready for the second year of contraction amid decelerating economic growth and stricter vehicle emissions standards.

Even with cash in the wake of the strong quarterly showing, the automaker stated it would still buy back up to $1.8 billion worth of its common stock, or 34 million shares.

The buying would take place through to the end of March.

Meanwhile, after three years of gains, Toyota retained its forecast for operating profit in the year to March to ease 2.7%.



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