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Toyota in profit but in for a bumpy ride

City A.M. Reporter
TOYOTA&rsquo;S surprise quarterly profit and halving of its annual loss forecast failed to convince investors the world&rsquo;s biggest carmaker is back on track, as government subsidies peter out and a strong yen takes its toll.<br /><br />Major Japanese automakers have raised their forecasts for the year to March 2010 as they squeeze out savings and government incentives&nbsp; prop demand.<br /><br />But with stimulus programmes beginning to run out, Toyota is looking to cut spending further. It is exiting Formula One racing to put that annual budget of around $300m (&pound;181m) to better use. <br /><br />Toyota, whose quarterly net profit was 21.8bn yen (&pound;145m) expects an 350bn yen operating loss this year, the biggest among its domestic peers.