1 month ago
Toyota Forecasts Fifth Straight Profit Drop Amid Quake Fallout
Toyota, the world’s biggest car maker, expects its profit for the last three months of 2024 to be lower than last year.
Sales fell a little, especially in China and the Middle East.
A big earthquake in Japan stopped work at four of its factories.
Higher costs for parts and problems in the supply chain also hurt earnings.
People are watching to see if Toyota can still meet its yearly profit goal of 3 trillion yen.
Toyota projected 1.11 trillion yen operating profit for Apr-Jun quarter, down 5% YoY.
Global sales fell 3% to just over 2.5 million units, with sharp declines in China (28%) and Middle East (33%).
Production halted at four domestic plants due to Kyushu earthquake, with three suspended through Wednesday and one through Friday.
Rising material costs from Middle East conflict and supply chain disruptions weighed on earnings.
Analysts expect further scrutiny of Toyota’s 3 trillion yen annual profit forecast amid cost pressures and quake impact.
- Who
- Toyota Motor Corporation
- What
- Forecasts a 5% decline in operating profit and reports sales drop due to earthquake and cost pressures
- Where
- Japan (Kyushu earthquake) and global markets
- When
- April-June 2024 quarter
- Why
- Weaker sales, rising material costs, and supply chain disruptions from the Middle East conflict and the earthquake
Key facts
- Operating profit forecast
- 1.11 trillion yen
- Sales volume
- 2.5 million units
- Profit decline
- 5% YoY
- Production halt
- 4 plants
- Quake location
- Kyushu, Japan
Quotes
Christopher Richter
autos analyst at CLSA
“"The first quarter could be a bit tougher than expected,"”
livemint.com
Sources
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