Toyota Cuts Output Goal As Profit Retreats 25%

Toyota Motor Corp. on Tuesday, Nov. 1, 2022, posted a worse-than-expected 25% drop in quarterly profit and cut its annual output target, as the Japanese firm battles surging material costs and a persistent semiconductor shortage.

Photo Insert: Also blamed for the slowdown in production and “unimpressive performance” is the shortage of chips.

Reporting for Reuters, Satoshi Sugiyama and Miyoung Kim reported that the Japanese carmaker’s second quarter profit was only 562.7 billion yen, much lower than the profit forecast of 772.2 billion yen.

Kyodo News and the Associated Press also reported that the less-than-rosy development forced the world’s largest carmaker to scrimp on output, cutting production to only 9.2 million units from the planned 9.7 million output for the fiscal year.

Also blamed for the slowdown in production and “unimpressive performance” is the shortage of chips. A Toyota executive said he cannot predict when the shortage would end.

Toyota shares were down 1.7% on the Tokyo bourse.

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