Expensive materials and production problems
Toyota had a disappointing financial quarter. At the bottom of the line, the Japanese still made quite a bit of profit, but that was much less than had been hoped. More expensive raw materials and supply chain problems were the culprits.
Toyota’s profit after the second quarter of this year – the first quarter of the fiscal year 2023 – came to 578.66 billion yen, or €4.2 billion. Toyota’s revenue rose 7 percent in the same period to $62.2 billion. Compared to the second quarter of 2021, Toyota’s profits have fallen by as much as 42 percent. That profit drop is much bigger than what analysts had expected. The decrease in profit also forms a significant contrast with the record profit of the past financial year.
Toyota has not had it easy this year. The group had to scale back its production targets several times due to the global chip shortage and corona lockdowns in China. Toyota was forced to close its eight Japanese factories for days earlier this year due to problems with parts supplies from China.
Despite the disappointing last quarter, Toyota is sticking to its target of producing around 9.7 million cars by fiscal year 2023. The Japanese even expect that target can be increased in the second half of the financial year. For the entire financial year, Toyota maintains its profit forecast of €17.5 billion.
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– Thanks for information from Autoweek.nl