Toyota Profit Takes Hit From Supply-Chain Troubles, Higher Costs
A Toyota dealership in Sapporo, Japan.
Photo:
Kentaro Takahashi/Bloomberg News
Toyota
TM -0.32%
Motor Corp. said its April-June quarterly profit fell 18% from a year earlier because of higher materials costs and a drop in sales caused by supply-chain difficulties.
Net profit for the quarter fell to ¥737 billion, equivalent to $5.5 billion, from ¥898 billion a year earlier, slightly below the consensus forecast of analysts polled by data provider Quick. Operating profit also fell from a year earlier.
The results echoed those of
General Motors Co.
, which said net profit fell 40% in the April-June quarter because parts shortages left it with tens of thousands of unfinished vehicles.
Other car makers, such as
Ford Motor Co.
and
Stellantis
NV, reported higher profits in the quarter on the back of strong demand, which car makers are expecting to continue through the end of the year despite recession fears.
Toyota said production was hindered by the Covid-19 lockdown in Shanghai and flooding in South Africa, leading to lower car sales.
Toyota said the biggest reason for the fall in operating profit was the higher cost of materials, which it said was caused by higher prices paid by its suppliers for fuel, transport and the like. It said higher materials costs pushed down operating profit by ¥315 billion, or about $2.35 billion, in the quarter.
Toyota maintained its forecast for group vehicle sales in the fiscal year ending March 2023, saying that production is likely to pick up in the latter part of this year and next year as shortages of semiconductors ease. It projected group vehicle sales, including those of subsidiaries Daihatsu Motor and
Hino Motors,
at 10.7 million units this fiscal year.
Write to Kosaku Narioka at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
A Toyota dealership in Sapporo, Japan.
Photo:
Kentaro Takahashi/Bloomberg News
Toyota
TM -0.32%
Motor Corp. said its April-June quarterly profit fell 18% from a year earlier because of higher materials costs and a drop in sales caused by supply-chain difficulties.
Net profit for the quarter fell to ¥737 billion, equivalent to $5.5 billion, from ¥898 billion a year earlier, slightly below the consensus forecast of analysts polled by data provider Quick. Operating profit also fell from a year earlier.
The results echoed those of
General Motors Co.
, which said net profit fell 40% in the April-June quarter because parts shortages left it with tens of thousands of unfinished vehicles.
Other car makers, such as
Ford Motor Co.
and
Stellantis
NV, reported higher profits in the quarter on the back of strong demand, which car makers are expecting to continue through the end of the year despite recession fears.
Toyota said production was hindered by the Covid-19 lockdown in Shanghai and flooding in South Africa, leading to lower car sales.
Toyota said the biggest reason for the fall in operating profit was the higher cost of materials, which it said was caused by higher prices paid by its suppliers for fuel, transport and the like. It said higher materials costs pushed down operating profit by ¥315 billion, or about $2.35 billion, in the quarter.
Toyota maintained its forecast for group vehicle sales in the fiscal year ending March 2023, saying that production is likely to pick up in the latter part of this year and next year as shortages of semiconductors ease. It projected group vehicle sales, including those of subsidiaries Daihatsu Motor and
Hino Motors,
at 10.7 million units this fiscal year.
Write to Kosaku Narioka at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Denial of responsibility! Techno Blender is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.