Toyota Motor Corporation has announced a 1 trillion yen ($6.3 billion) share buyback program and raised its profit forecast, driven by strong sales in the U.S. and Japan, partly aided by the yen's earlier weakness (which has recently strengthened). The world's largest automaker stated in a Tuesday release that it expects operating profit of 3.4 trillion yen for the current fiscal year ending next March, falling short of the 3.9 trillion yen average analyst estimate. The company also lifted its revenue forecast to 54 trillion yen from a previous 51 trillion yen.

Pioneered by Toyota, its gasoline-electric hybrid technology continues to see robust sales in the U.S. market, providing significant support. Combined with the benefits of the yen's depreciation in the first half, these factors have partially offset rising raw material costs and supply chain disruptions stemming from the Iran conflict, which has disrupted key maritime routes in the Middle East.

For the quarter ending June 30, Toyota reported a profit of 1.1 trillion yen, marking the fifth consecutive year-on-year decline, while quarterly revenue reached 13.5 trillion yen. The company had warned investors as early as May that profits for this fiscal year could take an unexpected dip. Toyota indicated that supply chain disruptions caused by the Iran conflict are expected to impact corporate profits by 670 billion yen.