Toyota Motor Corp. expects its profits to decrease in the coming fiscal year due to increasing material costs and other operating challenges, amidst the COVID-19 pandemic, the war in Ukraine and shortages of semiconductors.
For the fiscal year ending March 31, the automaker’s net profit increased 26.9% annually. Sales rose 15.3%, due to strength in its markets in the United States and Asia.
However, in the quarter ending March, Toyota’s profit fell -31% from the year-ago quarter, even as its revenue rose +6%.
Toyota expects -20% drop in operating profit in the new fiscal year to approximately $17 billion. It anticipates a squeeze in profit due to rising materials costs.