Reuters 5 min read
Toyota Motor Corp (7203.T) posted a record quarterly operating profit on Wednesday as pandemic-hit sales rebounded, but refrained from raising its full-year estimate, citing rising COVID-19 cases and a global chip shortage.
The world’s biggest automaker by vehicle sales stuck by its forecast made in May for an operating profit of 2.5 trillion yen ($22.93 billion) for the current fiscal year, trailing an average forecast for a 2.88 trillion yen operating profit, according to 24 analysts polled by Refinitiv. read more
Toyota shares fell 2% in afternoon trading on Wednesday, extending losses from the morning session, with some investors disappointed that the company had not lifted its profit guidance.
“In the first quarter, we have seen the results of our improvement activities, despite the severe business environment,” Toyota said in a statement.
Operating profit at Japan’s biggest automaker rose to 997.49 billion yen ($9.15 billion) for the three months ended June 30, higher than an average estimate of 752 billion yen based on 10 analysts polled by Refinitiv, and well above the 13.9 billion earned in the pandemic-hit first quarter a year earlier.
Profit for the latest quarter was also boosted by favourable foreign exchange movements.
The automaker maintained its forecast for 8.7 million vehicle sales in the current fiscal year, up from 7.65 million last year. Sales volumes in the first quarter recovered to near 2019 levels and the ratio of electrified vehicles rose steadily, it said in an investor presentation.
Toyota has been stockpiling semiconductors, used in everything from engine maintenance to car safety and entertainment systems, amid a global supply shortage that has hit production at rivals such as Hyundai Motor Co (005380.KS) and Ford Motor Co (F.N). read more
It has benefitted from a business continuity plan developed in the wake of the Fukushima earthquake in 2011 that required suppliers to stockpile anywhere from two to six months’ worth of chips depending on the time it takes from order to delivery, Reuters reported in March. read more
BMW (BMWG.DE) and Stellantis (STLA.MI) became on Tuesday the latest major car makers to warn that the global semiconductor chip shortage that has bedevilled the industry this year will drag on throughout 2021 and beyond, hitting production and sales. read more
The global semiconductor chip shortage will cost automakers $110 billion in lost revenues this year consulting firm AlixPartners said in May. read more
Toyota too has not gone unscathed.
It has faced production difficulties in Thailand, where it suspended vehicle production last month at three of its manufacturing plants due to a pandemic-related parts shortage. read more
($1 = 109.0400 yen)