TOKYO – Toyota's operating profit fell 28 per cent and net income plunged 86 per cent in the latest quarter as the coronavirus pandemic forced worldwide factory closures and hit vehicle sales.
Operating profit dropped to 384 billion yen (US$3.56 billion) in the company's fiscal fourth quarter ended March 31, Toyota said in its earnings report on Tuesday.
Net income fell 86 per cent to 63.1 billion yen (US$585.29 million) in the period, as revenue declined 8.4 per cent to 7.1 trillion yen (US$65.86 billion).
Global retail sales declined 11 per cent to 2.32 million vehicles in the January-March period, including results from its Daihatsu small-car subsidiary and truck-making affiliate Hino.
Worldwide wholesale volume retreated 6.5 per cent to 2.13 million vehicles.
In announcing the earnings results, CFO Kenta Kon warned that operating profit will drop 80 per cent in the current fiscal year ending March 31, 2021.
Citing uncertainty surrounding the ongoing impact of the COVID-19 pandemic, Kon said Toyota would withhold making a net income forecast. Revenues should decline 19.8 per cent on an anticipated 15 per cent decline in global retail sales to 8.9 million vehicles in the current fiscal year, he said.
Toyota’s slumping profit comes as the worldwide slowdown hammers earnings throughout the industry. Ford reported a US$632 million loss before interest and taxes in its first quarter and projected a US$5 billion hit in the second. Fiat Chrysler Automobiles posted a first-quarter loss of US$1.84 billion. Meanwhile, General Motors managed to stay in the black, but saw its net income plunge 87 per cent.