Toyota expects business to collapse
Toyota Motor Corporation announced on May 12 -“premise” that it will reduce the consolidated sales forecast for the year ending March 2021 by 21.9% to 7 million units
In its fourth quarter, marked by the Covid-19 crisis, its net profit fell 86.2% year-on-year to 63.1 billion yen, while its operating profit fell 27.5% to 384 billion yen and its revenue by 8.4% to about 7,100 billion yen.
Toyota expects a 79.5% collapse in operating profit in its new 2020/21 financial year, which starts on April 1, which is expected to reach 500 billion yen (4.3 billion euros), according to a statement.
It also expects its global sales to fall by 19.8% in 2020/21, which are expected to total 24,000 billion yen (206.8 billion euros at current prices).
Its operating margin fell to 5.4% in the fourth quarter, compared to 8.2% for the year as a whole. This indicator of profitability is expected to be 2.1% in 2020/21, according to the group’s current forecast.
Consolidated sales for the year ended March 20 were 8,958,000 units, close to a stable rate the previous year.
The new corona infection is said to have spread, and it is said to have influenced the decrease in the number of vehicles. The group’s total sales amounted to 10,457,000 units.
Toyota will remain a beneficiary.
Toyota Motor expects to achieve an operating profit of around 500 MdsJPY at the end of the fiscal year started on April 1, a decrease of 80% from the previous vintage and its lowest level in nine years.
In the fiscal year ended March 31, the results were solid.
Although the impact of the new Corona was not significantly increased in the fiscal year ending March 20, production and sales are expected to decline in the future.
For the year ended March 21, the company announced its consolidated profit forecast for revenue of 7 million units, with revenue of 19.8 to 24 trillion euros and operating profit down 79.5 to 500 trillion yen.
At the earnings briefing, Chief Executive Kenta Kincaid said, “We have made it public in a very difficult way to see the market.”