. 24/7 Space News .

Subscribe to our free daily newsletters

Toyota keeps net profit forecast despite production woes
By Hiroshi HIYAMA, Tomohiro OSAKI
Tokyo (AFP) Nov 1, 2022

Toyota kept its annual net profit forecast unchanged on Tuesday as the weaker yen offsets supply-chain disruptions that have forced the Japanese car giant to slash production targets.

The world's top-selling automaker said it now expects to sell half a million fewer vehicles than planned in the current financial year because of a global chip shortage and other supply problems.

Chief financial officer Kenta Kon warned that "headwinds are blowing" as he listed the uncertainties facing the company.

"Energy and material prices, as well as the global labour situation, are changing rapidly and significantly," along with shifting monetary policies and forex rates, he told reporters.

"A number of changes are happening simultaneously, including the semiconductor situation -- any one of which could have a major impact on the future of the automotive industry."

Semiconductors are an essential component of modern cars, and the pandemic-triggered chip drought has pummelled Toyota and its rivals worldwide.

On Tuesday Toyota revised down its full-year production plan to 9.2 million units "due to risks such as procurement of semiconductors".

The weak yen should help inflate revenues, however, and the carmaker now predicts annual sales worth 36 trillion yen ($240 billion), up from the previous forecast of 34.5 trillion yen.

Buoyed by the cheap yen -- which has lost more than 20 percent of its value against the dollar this year -- Toyota in August upgraded its full-year net profit forecast to 2.36 trillion yen, which it maintained on Tuesday.

- Production 'bottleneck' -

Net profit in the six months to September fell 23 percent year-on-year to 1.2 trillion yen.

Toyota said higher material costs pushed down its profits in North America in the first half, while business in Europe was affected by its decision to pull out of Russia.

The company announced in September its decision to end production in Russia, citing supply chain problems.

"It is hard to see six months ahead in the automotive industry, and it is really difficult to foresee Toyota's earnings," Kon said.

But the company can broadly maintain production levels "thanks to steady work over a long time, with many stakeholders, to improve financial health", he added.

Some analysts say Toyota has been less affected by the chip shortage than its Japanese rivals, due in part to the stronger ties it cultivated with domestic suppliers after Japan's 2011 earthquake and tsunami.

A key question will be how much longer Toyota is willing to keep up this approach, said Kohei Takahashi, an analyst at UBS Securities.

As the automaker readies to pivot toward new businesses and technologies, "there will come a moment Toyota will demand suppliers give something back," he said.

Seiji Sugiura, an analyst at Tokai Tokyo Research Center, told AFP ahead of the earnings release that Toyota will face difficulties ahead.

"Domestic production issues are emerging as a bottleneck," he warned, while "reduced exports could affect the extent to which (the forex rate) contributes to the company".

Toyota said each drop of one yen per dollar is estimated to translate into a 45-billion yen increase in operating profit.

So "benefits from the yen's depreciation will remain palpable", Sugiura predicted.



Related Links
Car Technology at SpaceMart.com

Thanks for being there;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Monthly Supporter
$5+ Billed Monthly

paypal only
SpaceDaily Contributor
$5 Billed Once

credit card or paypal

Stellantis China Jeep joint venture to file for bankruptcy
Beijing (AFP) Oct 31, 2022
A Chinese joint venture producing Jeep SUVs for Stellantis will file for bankruptcy, the European carmaker said Monday, after its chief executive complained earlier this month political tensions with the West were affecting the business environment. Earlier this month Carlos Tavares had said the auto giant would consider ending production in China, questioning whether the stability of relations between Beijing and the world could be guaranteed. Shareholders have given their approval for the join ... read more

Comment using your Disqus, Facebook, Google or Twitter login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

NASA to resume spacewalks after investigation into 'close call'

NASA Crew-4 astronauts safely splash down in Atlantic

Eagle-designed space drones target in-orbit construction

Crew-4 astronauts splash down after 170 days in space

UCF researcher receives NASA award to develop revolutionary rocket engine technology

Gilmour Space partners with Equipmake on advanced motors for rocket program

Gilmour Space offers tech demo satellite mission from Australia in 2024

AFRL upgrades rocket fabrication capabilities

Trying to Avoid Nodules: Sols 3633-3634

Ancient bacteria might lurk beneath Mars' surface

Considerations for microbial survivability of ionizing radiation on Mars for sample returns

Driving on the Sidewalk, MARDI-Style: Sols 3630-3632

China's 'Palace in the sky' space station complete after successful launch

China launches third and final module for Tiangong space station: state TV

China launches experimental satellite into space

Thermal control designs keep astronauts cool on space station

SatixFy completes business combination with Endurance Acquisition Corp

NanoAvionics announces growth plans to become the prime supplier for small satellite constellations

Spacecraft manufacturer Apex emerges from stealth with $7.5M in funding

Designing the trajectory of a microsatellite swarm from the macro-micro perspective

Canada orders Chinese firms to exit rare minerals deals

NASA inflatable heat shield finds strength in flexibility

D-Orbit signs launch contract with AAC SpaceQuest

PickNik Robotics wins Space Force contract for on-orbit capture

New technique to determine age will open new era of planetary science

Discovery could dramatically narrow search for space creatures

Discovery could dramatically narrow search for space creatures

Secret behind spectacular blooms in world's driest desert is invisible to human eyes

Mars and Jupiter moons meet

NASA studies origins of dwarf planet Haumea

NASA study suggests shallow lakes in Europa's icy crust could erupt

Sharpest Earth-based images of Europa and Ganymede reveal their icy landscape

Reuters Events SMR and Advanced Reactor 2023

Reuters Events SMR and Advanced Reactor 2023

The content herein, unless otherwise known to be public domain, are Copyright 1995-2022 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.