Toyota forecasts profit rebound amid chip shortage, unveils share buyback

Japan’s Toyota Motor Corp announced a $2.3 billion share buyback on Wednesday and forecast annual profit will rise by 14 per cent to pre-pandemic levels, as it shrugged off a coronavirus sales slump and a chip shortage that has hurt other car makers.

The world’s biggest automaker by vehicle sales expects renewed demand in the United States, its biggest market, to drive that recovery and forecast overall sales to grow 6.4 per cent to 10.55 million vehicles for the year.

Toyota shares reversed course to rise 2.1 per cent after the results on Wednesday, contrasting with a 10 per cent tumble for smaller rival Nissan whose guidance disappointed investors.