best-selling automaker let down by chips – EADaily, February 9, 2023 – Economy News, Asia News

Toyota said its third-quarter net income fell eight percent but left its full-year guidance unchanged as a cheaper yen offset the impact of a sharp rise in material prices, France-Presse (AFP) reported today, Feb. 9.

The world’s best-selling automaker, which changed its management team last month, posted a net profit of 727.9 billion yen ($5.6 billion), up from 791.7 billion yen a year earlier.

Although the Japanese auto giant retained its title over Volkswagen last year, it is still suffering from production disruptions caused by a shortage of chips, along with other industry players, AFP notes.

“Dealers, suppliers, and manufacturing sites have been hard at work in an environment where production plans have fluctuated wildly due to factors such as semiconductor shortages and natural disasters,” Toyota said in a statement this Thursday.

The company indicated that it still expects to see net profit of 2.36 trillion yen ($17.5 billion) for the 12 months of the fiscal year (to March 2023), down 17% from last year.

“We are taking on the burden on our suppliers caused by soaring material and energy prices so that competitiveness activities are carried out wide and deep throughout the supply chain,” – the message says.

While operating profit fell in the nine months (April-December), it rose in the third quarter “as the positive effect of a weaker yen and higher production volumes outweighed the negative effect of a sharp increase in material prices,” Toyota explained.

In January, the company set a production target of 10.6 million vehicles by 2023, more than in recent years, including the nine million produced in pre-pandemic 2019. However, Toyota has warned that actual production could be 10 percent lower due to a shortage of parts, which has already forced the automaker to cut plans for this year.

EADaily previously reported on the point put by Toyota management in a dispute about whether or not the brand supplies spare parts to the Russian market. It turned out that official exports were blocked, though with reservations.

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