Toyota has reported a very strong year-on-year increase in results for its first quarter of 2021/22. Due to numerous “uncertainties” for the remainder of the fiscal year, the Japanese auto giant has refrained from raising its annual forecast.
Toyota’s net profit for April-June increased more than fivefold year-over-year, totaling 897.8 billion yen ($7.7 billion), thanks to a dynamic recovery in business after the initial impact of the pandemic.
Net profit grew more than fivefold during the April-June quarter, reaching 897.8 billion yen thanks to the dynamic recovery of the company’s operations after being affected by the pandemic. Toyota spokeswoman told AFP on Wednesday that this set a record for the first quarter of the group.
The operating profit reached 997.5 billion yen, and sales jumped 72.5% year-on-year to 7935.6 billion yen. “Our performance is the result of maintaining our sales and supplies (…) despite shortages of semiconductors and the spread of Covid-19” by improving their competitiveness, Toyota noted in a statement.
“The situation is still unpredictable due to the expansion of Covid-19 in emerging countries, the shortage of semiconductors and the surge in raw material prices,” stated the manufacturer.
The Japanese company still expects a net profit of 2300 billion yen, representing an increase of 2.4% over just one year, as well as an operating profit of 2500 billion yen, or a gain of 13.8%.
For the entire fiscal year, it anticipates sales volumes of 10.55 million units for all of its brands of 30,000 billion yen.
Toyota’s caution chilled investors on the Tokyo Stock Exchange, even though many of them hoped for an increase in its annual targets. Before the results announcement, the share price increased slightly, but dropped by about 1.7% around 7:00 GMT.