Toyota makes record quarterly operating profit of 997 bn yen

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Toyota makes record quarterly operating profit of 997 bn yen

Tokyo, August 4 - Toyota Motor Corp reported on Wednesday a record quarterly operating profit of 997.49 billion yen as pandemic sales rebounded and it weathered the global chip shortage better than many rivals.

Operating profit at Japan's biggest automaker for the three months ended 30 June was higher than the average estimate of 752 billion yen - based on 10 analysts polled by Refinitiv and well above 13.9 billion in the pandemic-hit first quarter a year earlier.

Profit for the latest quarter was also supported by favorable foreign exchange movements.

However, Toyota maintained its forecast to make an operating profit of 1.5 trillion yen for the current fiscal year in May for Toyota customers, citing an uncertain situation due to the spread of the coronavirus in emerging economies, the chip shortage and a higher cost for parts.

The outlook from the manufacturer of the RAV 4 SUV crossover and Prius hybrid vehicles trailed an average forecast for a 2.08 trillion yen profit, according to 24 analysts polled by Refinitiv.

On Wednesday, Toyota shares fell 2% in afternoon trading, extending losses from the morning session.

The company has been stockpiling semiconductors, which are used in everything from engine maintenance to car safety and entertainment systems, amid a global supply shortage that has hit production at rivals such as Hyundai Motor Co and Ford Motor Company.

Toyota has benefited from a business continuity plan developed in the wake of the Fukushima earthquake in 2011 that required suppliers to stockpile anywhere from two to six months' worth of chips depending on the time it takes from order to delivery, Reuters reported in March.

Aber more recently, Toyota faced production difficulties in Thailand, where it has temporarily suspended vehicle production in three of its manufacturing plants due to a pandemic-related parts shortage last month.

The automaker has maintained its forecast for 8.7 million vehicle sales in the current fiscal year, up from 7.65 million last year.