Toyota Q4 profit nearly doubles, beats expectations
The automaker said it sold 9.92 million vehicles group-wide in the fiscal year just ended
There’s ‘huge disconnect’ between stock market and economy right now: strategist
Strategic Wealth Partners investment strategist Luke Lloyd and financial analyst Ann Berry weigh in on how Capitol Hill spending impacts the economy and markets.
Toyota Motor Corp reported on Wednesday its fourth-quarter operating profit jumped 92%, as it shrugged off chip-supply issues and as its sales recovered from the impact of the coronavirus pandemic.
Japan's biggest automaker posted an operating profit of 689.8 billion yen ($6.34 billion) in the January-March quarter, beating an estimate of 641.5 billion yen from 10 analysts compiled by Refinitiv. The profit was 369.9 billion yen in the same period a year earlier.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The global auto industry has been grappling with a chip shortage since late last year, which was worsened in recent months by a fire at a chip plant in Japan and blackouts in Texas where a number of chipmakers have factories.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TM | TOYOTA MOTOR CORP. | 173.49 | +0.54 | +0.31% |
But Toyota surprised rivals and investors last quarter when it said its output would not be disrupted significantly by chip shortages even as Volkswagen, General Motors, Ford, Honda and Stellantis, among others, have been forced to slow or suspend some production.
TOYOTA RECALLS VENZA SUVS TO FIX AIR BAG WIRING PROBLEM
Analysts have said Toyota, the world's biggest automaker by vehicle sales, has so far been largely unscathed likely due to its chip stockpiling policy.
The maker of the RAV4 SUV crossover and Prius hybrid said it sold 9.92 million vehicles group-wide in the fiscal year just ended, and expects to expand its sales this year to 10.55 million units.
CLICK HERE TO READ MORE ON FOX BUSINESS
It forecast operating profit to rise 13.8% this year to 2.50 trillion yen, lower than a 2.65 trillion yen average profit forecast from 24 analysts compiled by Refinitiv.
($1 = 108.8700 yen)
(Reporting by Eimi Yamamitsu; Editing by Tom Hogue and Muralikumar Anantharaman)