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Toyota Lifts Profit Forecast Despite Supply Chain Woes

You are currently viewing Toyota Lifts Profit Forecast Despite Supply Chain Woes
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Toyota, Japan’s top automaker, has reported today a 33 percent jump in the second fiscal quarter profit. Moreover, it is raised as to its full-year forecast thus despite the supply chain woes relating to the Corona Virus pandemic.

The carmaker is recording 626.65 billion ($5.5 billion) profit for the July-September period. This is, in fact, up from 470.5 billion yen the prior year. Quarterly sales did rise 11% to 7.5 trillion yen ($66 billion).

Toyota is Reducing Production Because of Supply Chain Disruption

The pandemic supply chain disruptions in computer chips are caused by the pandemic’s impact. It will hurt all the world’s automakers. Moreover, the carmaker has, in fact, also been forcing to reduce production because of the problems.

The production is recovering, Toyota officials said. The company is revving up to meet the big demand for its models. Moreover, it does include sport-utility vehicles and other offerings with solid profit margins.

Toyota: Profits are Up

Then, Toyota does expect a profit of 2.49 trillion yen ($22 billion) for the fiscal year through March 2022. It is up 11% from 2.2 trillion yen from the previous year.

Moreover, the maker of the Prius hybrid, Camry sedan and Lexus luxury models which had earlier did expect a slightly lower 2.3 trillion yen ($20 billion) profit.

Raising Value of Goods

The Japanese exporters are helping by the cheap yet. This includes Toyota by raising the value of products which is selling overseas, thus boosting results, offsetting the damage from rising material costs.

Thus cost cuts do also help, as did the rising prices of used cars. Plus the decline in incentives, according to Toyota.

In fact, Toyota officials are stressing they were not really overly optimistic that is because the results would, in fact, have been worse if it weren’t for the “tailwind” from the currency exchange perk.

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