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Toyota’s quarterly profit fell due to COVID spare parts

TOKYO – Toyota’s profits fell 31% in the January-March quarter from the year before, but the Japanese automaker still ended a year of record earnings.

Toyota Motor Corp. reported a surplus of 533.8 billion yen ($ 4.1 billion) in the last quarter on Wednesday, down from 777.1 billion yen the previous fiscal year. Quarterly sales rose nearly 6% to 8.1 trillion yen ($ 62 billion).

Toyota and other automakers have struggled to keep up with customer demand for their products due to a lack of spare parts caused by the coronavirus pandemic.

The company still sold 8.2 million vehicles around the world during the fiscal year to March, up from 7.6 million vehicles in the previous fiscal year.

For the fiscal year, Toyota made a profit of 2.85 trillion yen ($ 21.9 billion), an increase of almost 27% from 2.25 trillion yen the year before.

Toyota, which makes the Prius hybrid, Lexus luxury models and Camry sedan, said their profits got a boost from a favorable exchange rate. A weaker yen helps lift the results for Japanese exporters like Toyota when overseas earnings are converted to the yen.

Toyota’s operating revenues increased across global markets, including Japan, North America, Europe and the rest of Asia. The company said it expects car sales to grow in all regions in the coming months. It also plans to increase sales of electric cars as customers show more interest in organic vehicles and sustainability goals.


        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        

For the fiscal year to March 2023, Toyota expected a profit of 2.26 trillion yen ($ 17 billion), 20% lower than the fiscal year ending in March. It expects rising material costs to cut its profits.

Toyota, based in the city of Toyota in central Japan, warned that the various effects of COVID-19 have damaged the company’s operations and increased uncertainty about what lies ahead.

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Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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