Toyota quarterly profit down 42%

Toyota has reported a 42% year-over-year decline in quarter-on-quarter operating profit in the fiscal first quarter (quarter to the end of June) as performance came under pressure from supply shortages and higher costs.

However, Toyota left its full-year operating profit forecast unchanged at 2.4 trillion yen, unchanged from previous forecasts and also plans to produce 9.7 million vehicles this year.

Operating income for the quarter was 578.6 billion yen, about 42.0% lower than last year. However, sales revenue increased by 7% to 8.5 trillion yen, driven by positive price effects and the weaker yen.

The company said the impact of rising material prices would lead to a cost increase of 315 billion yen in the quarter.

Toyota said unexpected events, such as the lockdown in Shanghai and a flood in South Africa, made it difficult to produce as much as planned. It said that weaker currency effects from the yen were positive, but that a large effect of lower sales volume due to supply constraints and higher raw material prices led to a decline in operating profit.

Vehicle sales for the quarter were just over 2 million units, down 6.2% from last year.

Toyota said electrified vehicles are more likely to be affected by semiconductor shortages because they need a lot of semiconductors. As a result, the delivery time for electrified vehicles is longer, the company said.

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