Toyota (Toyota Motor Corp.) reported first-quarter results on Aug. 4, when the company's operating profit was 997.49 billion yen, up 11.4 times year-on-year and well ahead of analysts' expectations as sales rebounded. However, the company did not raise its full-year performance forecast due to the increasing number of novel coronavirus cases and the global shortage of chips.
Toyota's first-quarter operating profit for the three months ended June 30 was 997.49 billion yen (10 analysts in a $9.15 billion), Refinitiv survey estimated 752 billion yen, up from 13.9 billion yen in the same period last year. In the first quarter of this year, net profit attributed to Toyota was 897.83 billion yen ($8.228 billion), up 7.39 times year-on-year.
In May, Toyota forecast an operating profit of 2.5 trillion yen ($22.93 billion) for the current fiscal year, compared with an average forecast of 2.88 trillion yen by 24 analysts surveyed by Refinitiv.
Despite the bright first-quarter results, Toyota maintained its forecast of 2.5 trillion yen in operating profit for the current fiscal year in May.
"despite the tough business environment, we achieved some results in the first quarter." "We will continue these efforts in the future, but the future remains unpredictable due to novel coronavirus's proliferation in emerging countries, semiconductor chip shortages and soaring component prices," Toyota said in a statement. "
Toyota shares continued to fall on Wednesday, closing down 0.85%, extending their early decline.
Chip shortage
The production and sales of competitors such as Hyundai (Hyundai Motor Co.) and Ford (Ford Motor Co.) have been affected by a global shortage of chips. Judging from the latest financial results, Toyota has not been significantly affected.
According to previous reports in March, since 2011 Fukushima Earthquake, Toyota has developed a business continuity plan in which suppliers are required to stock chips for two to six months according to the delivery time of the order. This is why Toyota can still benefit from a shortage of chips.
But recently, Toyota is also facing production difficulties in Thailand. Last month, Toyota suspended car production at three Thai manufacturing plants due to a shortage of related parts due to the impact of the epidemic.
For now, the company has maintained its forecast of 8.7 million vehicles for the current fiscal year, up slightly from last year's 7.65 million.
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