Home LifeStyle Problems for Toyota: The announcement made by the car manufacturer

Problems for Toyota: The announcement made by the car manufacturer

442
0

Toyota downgraded its global sales and production outlook after declining its operating profit by 21% in the last quarter as a semiconductor shortage and a pandemic affected production.

Toyota downgraded its global sales and production outlook once again, after declining its operating profit by 21% in the last quarter due to a shortage of semiconductors and cramped production due to the pandemic, difficult sales and declining revenues.

The world’s largest carmaker has reduced its overall consolidated sales forecast to 8.25 million vehicles for the current fiscal year ending March 31, from a previous forecast of 8.55 million vehicles.

Toyota said it expects to lose between 100,000 and 200,000 production units in March due to semiconductor blockages, after losing 140,000 units in January due to interruptions caused by COVID-19.

In all, Toyota said it could lose up to 480,000 vehicles in production from January to March.

Poor production

“We do not believe that this imbalance between the supply and demand of microchips will improve soon, and with the outbreaks of coronavirus, the outlook remains unclear,” said Hiroyuki Suzuki, chief executive officer of the accounting division, as he announced financial results. .

“This uncertain situation is likely to continue in the next fiscal year,” he said.

Toyota’s low outlook includes a downward revision of its production plan for the fiscal year to 8.5 million vehicles, from the target of 8.87 million expected in mid-January.

Read:  Best superhero movie: what famous actor Hugh Jackman thinks

“The 8.5 million unit plan is based on taking into account all of the supply shortages currently expected and the prudent reduction in the forecast,” Toyota said.

The impact of the lack of supply and COVID-19 is felt not only in Toyota’s own factories, but also in those of its suppliers. The recovery perspective remains unclear, and Toyota is reviewing production plans “daily,” Suzuki said. Rising commodity prices are further affecting the results.

“The growth rate of commodity prices is unprecedented and we do not believe that these high prices will fall in the next fiscal year,” he said. “We believe this is a serious matter.”

In detailing the financial results, Toyota continued to cling to the profit outlook for the full fiscal year, despite declining sales and production. He said the beneficial exchange rates would offset the blow.

Exchange rates will compensate

Toyota expects an operating profit of $ 24.33 billion and a net income of $ 21.63 billion. Both the operating profit and the total net income would represent the second highest gain recorded at the company, coming only close to the historical maximums of the company.

In the third fiscal quarter ended December 31, operating profit fell 21% to $ 6.81 billion, but Toyota continued to provide a double-digit operating profit margin of 10.1%.

Quarterly net income fell 5.6 percent to $ 6.88 billion.

Read:  What happened after The New York Times acquired Wordle: the impact of the most popular game today

Revenue fell 4.5% to $ 67.65 billion in October-December as global sales fell 15% to 2.0 million vehicles in the quarter. Consolidated sales cover deliveries for Lexus and Toyota, as well as Daihatsu and Hino.

Global retail sales fell 11% to 2.52 million vehicles in the third fiscal quarter.

In the third fiscal quarter just ended, North American sales fell 31 percent to 522,000 units. Regional operating profit fell 45% to $ 945.3 million during that period.

The future looks stable

In addition, Toyota was able to cut spending on North American incentives by $ 1.30 billion in the first three quarters as supply and inventories shrank as demand grew.

Sales in Europe fell 12% to 250,000 vehicles, while regional business there rebounded, operating profit rose 53% to 732.5 million dollars.

Looking ahead, Toyota has kept its retail sales forecast unchanged at 10.29 million vehicles for the fiscal year ended March 31, including the Daihatsu and Hino volume.

This total would increase from 9.92 million units in the previous fiscal year and would fall slightly above the record 10.6 million vehicles sold in the fiscal year ended March 2019.

The company’s retail outlook for the Toyota and Lexus brands also remained stable at 9.4 million, up from 9.09 million in the previous fiscal year.

Previous articleValencia cancels San Mamés
Next articleThe most hidden Netflix filming locations to add to your travel list