Toyota saw profits slump in last quarter with bosses blaming supply chain issues

  • Toyota sees profits slump by close to six per cent in the three months to December
  • Bosses blame supply chain issues including global semiconductor shortage
  • Japanese firm still on course to sell more vehicles than last financial year

Time 2:51 pm, February 9, 2022

Toyota has become the latest manufacturer to feel the pinch of global supply chain issues after the firm saw profits slump by close to six per cent last quarter.

The Japanese car giant’s profit for the three months to December totalled £5.1bn, down from £5.4bn the previous year.

Bosses at the company put the decline down to issues such as the semiconductor crisis, which could continue in the next financial year.

Toyota sold 2.5m vehicles around the world during its third quarter, down from 2.8m vehicles the same period a year ago.

It lowered its full-year sales forecast to 8.25m vehicles from an earlier 8.55m vehicles.

Despite the revised forecasts, Toyota are still on course to top the 7.6m vehicles it sold during the last financial year, when sales were battered by the pandemic.

When including group manufacturers such as Daihatsu and truck-maker Hino, Toyota expects retail sales of 10.29m vehicles for the year, up from 9.9m in the previous 12 months.

The maker of the Prius hybrid and Lexus luxury brand kept its full-year profit forecast unchanged £15.9bn.

Toyota recorded a £14 bn profit the previous year.

The company said a favourable exchange rate had helped its latest earnings, while cost reduction efforts and marketing costs dragged on profitability.

Bosses also apologised for the production delays caused by the shortage of chips and other parts because of production issues caused by Covid-19 measures.

A spokesman said in a statement: ‘We apologise for the inconvenience caused to customers who have to wait a long time until delivery, but we will continue to make improvements through All-Toyota together with our dealers and suppliers.’

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.

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