Click to Enlarge.
Toyota Motor Corp. today reported a quarterly profit of ¥736.8 billion ($5.5 billion) for Q1 of Fiscal Year 2023, down from ¥897.8 billion ($6.74B) the previous year, even though sales rose 7% to ¥8.49 trillion ($63 billion).
A favorable foreign exchange rate from a weak Yen increased Toyota’s operating income for the quarter by ¥195 billion ($1.5 billion), TMC said in a results presentation.
Aside from the well-known semiconductor problems, Covid lock-downs in Shanghai and other parts of Asia, as well as flooding in South Africa and the ongoing Hino emissions fraud matter hurt the results. Toyota shares fell -3.45% after it released its earnings report, which showed a 42% year-over-year drop in operating profit, but recovered slightly to close down -2.99%. The Nikkei average share closed up 0.69% at ¥27,932.20 and even topped the ¥28,000 mark at one point.
Nonetheless, TMC sold ~2 million vehicles during the quarter compared to 2.1 million vehicles in the same period last year. TMC also reaffirmed its to produce 9.7 million vehicles, saying output will increase later this year. It projects sales 10.7 million vehicles worldwide in the fiscal year through March 2023, up from nearly 10.4 million vehicles in the previous fiscal year.
Click to Enlarge.
Toyota posted record earnings in the last fiscal year through the end of March at ¥2.85 trillion ($21 billion) profit, +27% year-on-year. During the fiscal year ending 31 March 2023, TMC forecast a profit of ¥2.36 trillion ($17.6 billion). This is an increase from an earlier estimate of ¥2.26 trillion ($16.9 billion).
“In order to strengthen competitiveness of the entire supply chain in the medium to long term, we will absorb the burden on our suppliers caused by the current severe business environment,” TMC said. “In terms of the burden on our suppliers caused by the soaring materials prices, in addition to taking actions based on the pre-agreed rules concerning purchase prices, we will handle some of the problems that our suppliers face. We will continue with our investment for growth to create a future mobility society and work together with our stakeholders to improve our profit structure.”
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Toyota Motor FY Q1 Profit Drop Spooks Market
Click to Enlarge.
Toyota Motor Corp. today reported a quarterly profit of ¥736.8 billion ($5.5 billion) for Q1 of Fiscal Year 2023, down from ¥897.8 billion ($6.74B) the previous year, even though sales rose 7% to ¥8.49 trillion ($63 billion).
A favorable foreign exchange rate from a weak Yen increased Toyota’s operating income for the quarter by ¥195 billion ($1.5 billion), TMC said in a results presentation.
Aside from the well-known semiconductor problems, Covid lock-downs in Shanghai and other parts of Asia, as well as flooding in South Africa and the ongoing Hino emissions fraud matter hurt the results. Toyota shares fell -3.45% after it released its earnings report, which showed a 42% year-over-year drop in operating profit, but recovered slightly to close down -2.99%. The Nikkei average share closed up 0.69% at ¥27,932.20 and even topped the ¥28,000 mark at one point.
Nonetheless, TMC sold ~2 million vehicles during the quarter compared to 2.1 million vehicles in the same period last year. TMC also reaffirmed its to produce 9.7 million vehicles, saying output will increase later this year. It projects sales 10.7 million vehicles worldwide in the fiscal year through March 2023, up from nearly 10.4 million vehicles in the previous fiscal year.
Click to Enlarge.
Toyota posted record earnings in the last fiscal year through the end of March at ¥2.85 trillion ($21 billion) profit, +27% year-on-year. During the fiscal year ending 31 March 2023, TMC forecast a profit of ¥2.36 trillion ($17.6 billion). This is an increase from an earlier estimate of ¥2.26 trillion ($16.9 billion).
“In order to strengthen competitiveness of the entire supply chain in the medium to long term, we will absorb the burden on our suppliers caused by the current severe business environment,” TMC said. “In terms of the burden on our suppliers caused by the soaring materials prices, in addition to taking actions based on the pre-agreed rules concerning purchase prices, we will handle some of the problems that our suppliers face. We will continue with our investment for growth to create a future mobility society and work together with our stakeholders to improve our profit structure.”
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.