Toyota Q1 profit slides 42%, falls far short of estimates
Published on: Thursday, August 04, 2022
By: Reuters, FMT
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Toyota’s operating profit fell to US$4.3 billion in the three months ending June 30. (File pic)
TOKYO: Japan’s Toyota Motor Corp on Thursday posted a worse-than-expected 42% drop in first-quarter operating profit, as auto production was curbed by Covid-19 restrictions on factories in China and a global semiconductor shortage.

Operating profit for the three months ended June 30 slid to ¥578.66 billion (US$4.3 billion), falling far short of the average ¥845.8 billion profit estimated by 10 analysts, according to Refinitiv data. In the same period a year earlier, Toyota reported a ¥997.4 billion profit.

Despite the quarterly drop, the automaker stuck to its forecast for annual operating earnings of ¥2.4 trillion in the 12 months through March 31, 2023.

The carmaker cut its monthly production targets three times during the April-June quarter, falling 10% behind its initial goals, due to shortages of semiconductors and the impact of Covid-19 lockdowns in China.

Toyota shares, which were down 0.5% just before the release of the earnings, extended losses immediately after and were down 2.7% at ¥2,097.


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