Toyota warns that its annual benefit will collapse by 20% due to material and logistics costs

File photo of the Toyota logo. Oct 24, 2019. REUTERS/Soe Zeya Tun/

Por Satoshi Sugiyama

TOKYO (Reuters) – Toyota Motor Corp. warned that this year’s operating profit could be cut by a fifth “due to unprecedented increases in material and logistics costs” after a 33% drop in fourth-quarter profit. quarter, sending its shares down more than 5%.

Toyota said it expects material costs to double to 1.45 trillion yen ($11.1 billion) in the fiscal year that began in April.

The world’s largest automaker by sales, which fared well during the early months of a global chip shortage, has now joined its international counterparts in cutting production thanks to prolonged shortages and new COVID-19 restrictions. 19 from China.

For the current fiscal year, Toyota forecasts operating profit to fall to 2.4 trillion yen, down from almost 3 trillion a year earlier, well below the 3.36 trillion yen forecast in a survey by Toyota. Refinitiv among 25 analysts.

($1 = 130.3400 yen)

(Reporting by Satoshi Sugiyama; editing by Kenneth Maxwell, translated by José Muñoz in the Gdańsk newsroom)

Source