Toyota’s profit slumps 21 per cent as chip shortages curtail production
The world’s biggest car maker Toytota has posted a 21 per cent fall in operating profit after ongoing chip shortages curtailed production.
In the three months ended 31 December, the group’s profits went down to $6.8bn, forcing the automotive maker to reduce 2022 production volume forecasts by 500,000 units, going down from 9 million to 8.5 million vehicles.
“We apologise for the inconvenience caused to customers who have to wait a long time,” the company said today in a statement.
Even though it was forced to cut down on production, Toyota decided to leave its full-year forecast at $24.3bn, saying it will work to increase profits further.
According to Refinitiv data, the car maker’s prediction for the full year remains $26.3 billion lower than analysts’ predictions while its three-month results were higher than expected.
“Despite reducing the production volume forecast, we have left the operating income forecast unchanged, taking into account the depreciation of the yen and the accumulation of profit improvement activities.”
Toyota was crowned at the end of January the world’s largest manufacturer for the second year in a row, after sales went up 10.1 per cent to 10.5 million vehicles sold.