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Automobiles

Toyota earnings outlook clouded by $13bn cost increase, Lexus backlog

Chip shortage continues to disrupt production of luxury brand models

Lexus production has been hampered by the global shortage of semiconductors. (Photo by Shinya Sawai)

NAGOYA, Japan -- Toyota Motor now expects to pay an extra 1.7 trillion yen ($12.8 billion) in material costs this fiscal year, a sharply higher forecast than just a few months ago owing to a weak yen and the disruption from the war in Ukraine.

Thursday's new estimate for the year ending March 2023 is 20% higher than the projection released in May.

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