Home ›› 05 Aug 2021 ›› Corporate
Toyota’s net profit soared more than fivefold in the first quarter as strong sales were fuelled by the recovery from the coronavirus crisis, but the firm left its annual forecast unchanged Wednesday citing “uncertainties” ahead.
The world’s top-selling automaker has bounced back quicker than its competitors from the impact of Covid-19 lockdowns, reclaiming the top spot for sales last year.
The Japanese giant has also so far weathered a global chip shortage that has forced rivals to slash production targets, although it is now facing some disruption.
For the three months to June, Toyota logged an 897.8 billion yen ($8.2 billion) net profit -- a record for the first quarter, and up from 158.8 billion yen in the same period last year. Sales surged 72.5 percent to 7.9 trillion yen.
“The first-quarter results were the result of our maintaining... stable sales and supply, despite the semiconductor shortage and spread of Covid-19,” the company said in a statement.
But it maintained its full-year net profit forecast at 2.3 trillion yen, warning of “uncertainties in and after the second quarter”.
Last week, Toyota said group global sales hit a record high for the six months to June, thanks to healthy demand for its Highlander and Camry models in the United States and Corolla and Lexus brands in China.
“Toyota has sustained its strong performance,” said Satoru Takada, an auto analyst at Tokyo-based research and consulting firm TIW.
The firm “has a good chance of retaining the crown of the world’s number one carmaker”, Takada told AFP before the results were released.
In June, Toyota temporarily suspended operations at two domestic plants because of the global chip crunch, with a third short hiatus currently at a separate factory.
Microchips are essential for the electronics systems of modern cars, and have been in short supply since the end of last year.
When the pandemic hit, carmakers worldwide scaled back orders, so chipmakers shifted output to consumer electronics as people splurged on equipment to work and relax at home.
