Toyota Motor on Tuesday posted a 25% drop in quarterly profit and cut its annual output target, as the Japanese company is still struggling from rising costs and semiconductor shortage.
The carmaker’s worse-than-expected results took by surprise analysts who were expecting a stronger rebound.
During the coronavirus pandemic, Toyota was able to manage better supply chains than most carmakers, however the company is now suffering from the prolonged chip shortage that worsened this year.
“We’re out of the worst phase. It’s not necessarily a situation where we’re fully supplied,” said Kazunari Kumakura, Toyota’s purchasing group chief. “I don’t know when the chip shortage will be resolved.”
The world’s biggest carmaker reported its production rebounded by 30% in the quarter, but the company warned last week shortages of components would continue to constrain output in coming months.
Toyota said it now expects to produce 9.2 million vehicles this fiscal year, down from the 9.7 million forecasted but still ahead of last financial year’s production of about 8.6 million units.
Toyota said last Thursday it will temporarily give new car buyers just one smart key instead of two, trying to save semiconductors used on keys. The measure will apply to 14 models for sale in Japan.
The Japanese carmaker also stuck to its annual operating profit forecast, even as it reaped the benefits of the yen’s historic decline. Japan’s currency slumped to a 32-year low in October, and has weakened more than 22% against the dollar this year.