TOKYO - Japan’s Toyota Motor Corp on Thursday posted a surprise 22 per cent rise in third-quarter operating profit, as a weaker yen and higher sales volumes helped the automaker overcome a jolt from soaring raw materials costs.
Operating profit is on track to reach 2.4 trillion yen (S$24.2 billion) for the fiscal year ending March, the world’s largest automaker said.
Analysts are projecting, on average, profit of 2.66 trillion yen for the period. Profit for the third quarter topped projections at 957 billion yen.
Toyota, like many global manufacturers, is grappling with the continued fallout from semiconductor shortage and the pain from rising costs.
The company said it was striving to quickly evaluate alternative semiconductors and take other measures to secure stable procurement of chips, according to a presentation that accompanied the results.
After 14 years at the helm, Toyota chief executive officer Akio Toyoda is preparing to become executive chairman and cede his current role in April to Mr Koji Sato, who runs the Lexus luxury car division.
Apart from keeping production intact while shortages persist for parts and semiconductors, Mr Sato will have to guide Toyota into a new era of electrification and driverless vehicles.
He will take over as production recovers from Covid-19 induced lockdowns, supply chain snarls and component shortages.
At the same time, it warned that final shipments could be 10 per cent lower if it is unable to procure enough parts, especially chips.
The company trimmed its annual production target by about 1 per cent, to around 9.1 million vehicles.
Toyota recently solidified its status as the world’s largest carmaker for the third consecutive year, having sold 10.5 million units in 2022, widening its lead over Volkswagen AG.
It also benefited from a plunge in the yen in October 2022. The Japanese currency hit a 32-year low of 151.94 yen to the dollar on October 21, prompting authorities to intervene.
Shares in Toyota reversed losses and rose as much as 0.9 per cent after the results. The stock is up about 6 per cent in 2023, after declining 14 per cent in 2022. REUTERS, BLOOMBERG
