Fall of Toyota Q3’s Operating Profit
Toyota is the world’s biggest automaker for past three years, by manufacturing 3.28 million vehicles in Japan last year, compared with 992,000 by Honda and 1.13 million by Nissan. Toyota’s October and December operating profit was ¥99.07 billion; down from ¥189.1 billion in the same period a year before. Its net profit fell 38.9%, to ¥93.63 billion. Till 31st March, the world’s biggest automaker lifted its forecast for annual operating profit to ¥550 billion from a vigilant ¥380 billion.
Toyota Motor Corp has recently reported a 47.6% drop in quarterly profit. Its shares had risen 18% in the past three months versus a 13% gain in Tokyo’s broad TOPIX index. Honda gained 22% and Nissan gained 13%.
Kazuyuki Terao, Chief Investment Officer of RCM Japan said: “Compared with other Japanese automakers, Toyota has greater exposure to the domestic market and therefore is more subject to the negative impact of the country’s slow economic growth,”
A survey of 23 analysts by Thomson Reuters forecasted annual operating profit of ¥489 billion for Toyota, trailing expected earnings at smaller rivals Nissan Motor Co and Honda Motor Co. Nine analysts surveyed by Reuters see Toyota’s third-quarter net profit fall 38.9% to 93.63 billion yen.
Nissan and Honda Motors Co are also seen suffering a drop. Toyota is facing such fall due to given its heavy exposure both to unprofitable exports from Japan and its market.