This archive report was first published on 7 August 2020.
On Thursday, Toyota Motor Corp. revealed a significant decline in its first-quarter net profit, plummeting by 74% due to the widespread effects of the coronavirus pandemic on sales globally.
The Japanese auto giant's first-quarter revenue dropped by 40%, prompting the company to issue a revised net profit guidance. Toyota now expects its net profit to fall by 64% for the fiscal year ending in March.
According to the company's statement, the impact of COVID-19 is 'wide-ranging, significant, and serious,' with the weakness expected to persist in the near term.
Despite this, Toyota reported selling around 200,000 more vehicles than anticipated in the April-to-June quarter. The company now forecasts selling 7.2 million vehicles in the financial year ending in March, a slight increase from its previous May forecast of seven million but still below the previous year's total of nearly nine million.
Toyota's spokesman noted that the pace of recovery in certain regions has been faster than initially forecast, but the ongoing virus situation continues to introduce uncertainties into the business outlook.
As a result, the company acknowledges the possibility that its forecast could change.
