Toyota raises profit outlook as weak yen offsets Japan slump

TOKYO (Reuters) - Toyota Motor Corp lifted its operating profit guidance by 8 percent on Wednesday as a weaker yen increases the value of sales overseas and makes up for slumping demand at home.

The world's biggest automaker now expects record operating profit of 2.70 trillion yen ($22.93 billion) for the year ending March 31. That compared with a previous forecast of 2.5 trillion yen as well as the 2.762 trillion yen average estimate of 30 analysts polled by Thomson Reuters I/B/E/S.

For October-December, Toyota said operating profit grew 27 percent to 762.88 billion yen, versus the 690.21 billion yen estimate of 15 analysts. It also changed its U.S. dollar-yen exchange rate assumption to 109 yen for the current year, from 104 yen.

The yen's decline has been a boon for Toyota, which exports roughly half of its vehicles produced in Japan. Cost-cutting undertaken when the yen hovered at record highs in recent years has also helped the automaker's bottom line.

($1 = 117.7300 yen)

(Reporting by Chang-Ran Kim; Editing by Christopher Cushing)