Toyota raises profit forecast despite trading challenges

<p>Toyota has raised its profit forecast for the financial year in spite of its dispute with China.</p>

Toyota has demonstrated its ambition by increasing its profit forecast as its recovery continues.

This is in spite of the fact the carmaker's trade has been damaged by last year's natural disasters and anti-Japanese sentiment, which has been hurting sales in China as a result of an ongoing territory dispute.

For the financial year to March 31st 2013, Toyota now predicts it will have a net profit of 780 billion yen (£60 billion), which is up from its earlier forecast of 760 billion yen.

As such, the manufacturer has been enjoying a sharp uptick in its sales in Japan and the US, but it warned the ongoing clash with China over a clutch of islands in the East China Sea is likely to hurt orders with the world's largest economy.

"For the first six months of this financial year, we have seen a significant increase in production in all regions compared to the same period last year," commented Satoshi Ozawa, executive vice-president of Toyota.

At 09:50 GMT today (November 5th), Toyota shares rose by 2.8 per cent on the London Stock Exchange to 31.30p.

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