GOVERNMENT INCENTIVES LIFT TOYOTA SALES

       Toyota Motor, the world's largest car-maker, narrowed its full-year net loss forecast for a second time after government stimulus measures revived vehicle demand in the US and Asia.
       The company expects a 200-billion yen(Bt73 billion) loss in the year ending March 31, compared with an earlier forecast for a YEN450-billion loss, it said yesterday.
       The auto-maker posted an unexpected second-quarter profit of YEN21.8 billion.
       Toyoto joined Nissan Motor in predicting a smaller loss as government tax cuts and subsidies spurglobal car demand.
       President Akio Toyoda, who said last month the maker of Corolla compact cars was one step from "irrelevance or death", has ordered the carmaker's first plant closure and an exit from Formula One racing to cut costs. "Toyota's sales are picking up more than initially thought," said Koichi Ogawa, chief protfolio manager at Daiwa SB Investments in Tokyo, which manages YEN3.4 trillion. "Like Honda and Nissan, Toyoto is benefiting from government stimulus programs."
       Toyota City, a Japan-based company raised its full-year revenue forecast to YEN18 trillion from YEN16.8 trillion as it boosted vehicle sales estimates for Asia, Japan and Norht America. The improved earnings outlook follows Honda Motor almost tripling its profit estimate last week.
       Nissan narrowed its loss forecast, citing better-than-expected sales in China. Hyundai Motor, South Korea's biggest auto-maker, posted a record profit in the quarter on surging US and China sales and a weaker won.
       Toyota's second-quarter net income compared with a projected loss of YEN23.2 billion, based on the median of five analyst estimates compiled by Bloomberg. The profit was due to strong performance by the company's finance division,Toyota said.
       Net income in the three months still fell from YEN139.8 billion a year earlier as vehicle sales declined in Asia, Euroipe and the US and a stronger yen cut the value of overseas earnings.
       The yen averaged 13 per cent stronger against the dollar last quarter than a year earlier.
       "The US economy is still in bad shape, with the job situation worsening," said Yuuki Sakurai,chief executive officer of Fukoku Capital Management in Tokyo, which manages about YEN800 billion. "The dollar well likely remain weak."
       For the full year, Toyota raised its global vehicle sales forecsst to 7.03 million from an August forcast of 6.6 million. It sold 7.57 million units last fiscal year.