Toyota says Q3 net income soars 50%
11 February, 2021
Toyota said Wednesday that net income soared 50 percent found in the third one-fourth and upgraded its full-year forecasts seeing as the global auto sector steadily recovers from the coronavirus pandemic.
The world's top carmaker said it made 838.7 billion yen in the 90 days to December, weighed against 559.3 billion yen a year earlier, and revised up full-year forecasts for the second straight quarter.
Net profit was 1.90 trillion yen for the fiscal year to March, weighed against its earlier estimate of just one 1.42 trillion yen.
Sales are actually seen in 26.5 trillion yen, weighed against the 26.0 trillion yen previously forecast.
The firm this past year overtook Volkswagen as the world's top carmaker for the first time in five years.
Analysts said it had been bouncing back quicker than competition from the consequences of the global economical crisis due to the pandemic.
"In a tough organization environment, Toyota is outperforming its rivals," Satoru Takada, auto analyst Tokyo-based exploration and consulting organization TIW, told AFP prior to the announcement.
The pandemic has taken much toll on the global auto sector but demand recovered swiftly in the next half of this past year, most notably in the US and China.
"Japan's auto industry confirmed a reliable performance as major market segments are dealing with the negative effects of the brand new coronavirus globally," Takada explained.
"But we should not be as well optimistic as the existing shortage of semiconductors is forcing carmakers to cut back production.".
On Tuesday, Toyota's smaller rival Nissan upgraded its full-year earnings forecast, beating market goals to come back an operating income for the very first time in four quarters.
Honda also revised upward it has the full-year outlook due to net profit more than doubled found in the third quarter.
But Nissan and Honda downgraded their product sales forecasts for the existing fiscal year, citing partly the chip shortage.
Toyota said the shortage was not causing output reductions, and sales for the third quarter increased found in Japan, North America, and European countries, Toyota said.
It upgraded its global revenue forecast to 9.73 million units for the fiscal year.
"The chip shortage possesses hit wide-ranging industries all over the world and is expected to last at least before the end of March," Yasuo Imanaka, chief analyst at Rakuten Securities, told AFP.
"But the effect on Toyota appears small, compared to those in its rivals and others," Imanaka said.
Toyota shares, which have surged a lot more than 35 percent since mid-March last year, advanced 2.12 percent to 8,164 yen found in afternoon trading as investors largely welcomed the results.
Toyota reclaimed the name of the world's top-advertising automaker last year, offering 9.53 million vehicles around the world, overtaking the 9.3 million sold by German rival Volkswagen.
The Japanese giant took the lead despite a decline in global sales greater than 10 percent as the auto industry suffered the effects of the coronavirus pandemic.
Toyota said it had benefited from a good jump in sales found in China, which were up over ten percent year-on-year, and a good better-than-expected performance globally found in the October-December quarter.
The last time Toyota held the most notable spot was in 2015, with VW edging it out in the following years.
Analysts say the company features successfully pursued a technique of quality over quantity in North America and China.
It has additionally benefited from improved ties with China's authorities, which is interested in Toyota's green tech, together with brand-building found in China by Japanese automakers more generally, expert state.
Source: japantoday.com
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