Toyota reports 25% drop in Q2 profit, misses estimates

Posted on November 1, 2022Comments Off on Toyota reports 25% drop in Q2 profit, misses estimates

© Reuters. FILE PHOTO: A Toyota logo is displayed at the 89th Geneva International Motor Show in Geneva, Switzerland March 5, 2019. REUTERS/Pierre Albouy/File Photo

TOKYO (Reuters) -Toyota Motor Corp on Tuesday posted a 25% drop in second-quarter operating profit, as soaring parts and materials costs outweighed a boost in overseas revenue from the plunging Japanese yen, as well as a rebound in production.

Operating profit for the three months ended Sept. 30 fell to 562.7 billion yen ($3.79 billion), missing an average estimate of 772.2 billion yen in a poll of 12 analysts by Refinitiv. In the same period a year earlier, the world’s biggest automaker by sales reported a 749.9 billion yen profit.

Still, the company stuck to its full-year operating forecast of 2.4 trillion yen for the fiscal year through March 31.

Toyota said last week its global production rebounded by 30% in the quarter that ended in September, but warned shortages of semiconductors and other components would continue to constrain output in coming months.

It also warned last month that it is unlikely to meet its 9.7 million vehicle production goal for this financial year citing a scarcity of chips. It cut the target on Tuesday to 9.2 million vehicles.

A gradual improvement in the auto chip shortage situation should help raise output in the second half of the current fiscal year, but investors are now concerned about the outlook for demand as rising interest rates deepen recession fears.

($1 = 148.3100 yen)

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