By Kosaku Narioka
Toyota Motor Corp. said Thursday that its first-quarter net profit fell 18% from a year earlier as sales declined and materials costs rose.
The Japanese auto maker said that net profit for the quarter ended June fell to 736.82 billion yen ($5.50 billion) from Y897.83 billion a year earlier. That missed the estimate of Y756.80 billion taken from a poll of analysts by Quick.
First-quarter revenue increased 7.0% from a year earlier to Y8.491 trillion.
Toyota said that production was hindered by the Covid-19 lockdown in Shanghai and flooding in South Africa, leading to lower car sales. Higher costs of materials also weighed on earnings.
Operating profit for Japan fell to Y336.7 billion from Y518.5 billion a year earlier and that of North America dropped to Y14.5 billion from Y248.8 billion.
Toyota kept its forecast of group vehicle sales but raised its revenue and net-profit projections for the fiscal year ending March 2023.
The company continues to expect group vehicle sales, including those of subsidiaries Daihatsu Motor Co. and Hino Motors Ltd., of 10.7 million units.
Toyota projects that revenue will increase 9.9% to Y34.500 trillion, compared with its previous forecast of a 5.2% rise. It expects net profit to drop 17% to Y2.360 trillion, compared with its previous view of a 21% decrease.
Write to Kosaku Narioka at [email protected]
Credit: www.marketwatch.com /