Toyota shares hit record high in Japan after company raises earnings forecast

Toyota Motor’s shares

rose sharply to a record high, extending the previous day’s gains after the automaker raised its fiscal-year earnings forecast.

Shares were recently 4.9% higher at 3,289 yen after rising as much as 7.3% to a record intraday high of Y3,364 earlier Wednesday morning.

Toyota said Tuesday that it expects net profit to climb 84% to 4.500 trillion yen ($30.42 billion) for the fiscal year ending March as hybrid vehicles lead sales growth. It previously forecast a 61% increase in fiscal-year net profit.

Toyota has been taking what it calls a multipathway approach, which means offering consumers a variety of vehicles, including hybrid-electric and hydrogen-powered cars, as well as electric vehicles.

Overnight, Toyota said it would invest an additional $1.3 billion in its flagship Kentucky facility to support the assembly of a new three-row battery-electric sports utility vehicle for the American market.

Late Tuesday, Toyota also said it would take a minority stake in Taiwan Semiconductor Manufacturing Co.’s

manufacturing unit in Japan, a move that helps Toyota secure advanced chips. A shortage of semiconductors had weighed on the production of Toyota and other carmakers worldwide as the global economy recovered from the COVID-19 pandemic.

Read more from source