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Toyota’s Q3 profit jumps to 22% over weak yen 

Oluwanifemi Ojo
Oluwanifemi Ojo
Toyota logo at the Tokyo Motor Show

Toyota Motor Corp, the world’s largest automobile  on Thursday recorded a 22% rise in its third-quarter operating profit.

The rise was reported to have resulted from the weaker state of Japanese currency,yen. Also, the automaker recorded higher volume of sales helping overcome the impact  of an increasing cost of raw materials.

According to Reuters, the operating profit for the three months ending December 31 was 956.7 trillion yen ($7.28 billion).

Based on the statistics from Refinitiv, it exceeded the average profit expectation of 10 analysts, which was 764.54 billion yen. Toyota posted a 784.4 billion yen profit over the same period last year.

The biggest automaker, just like others in the world is still struggling with the effects of the ongoing semiconductor scarcity as well as the pain of increased prices.

Reuters reported that a presentation following the results quoted Prius manufacturer as saying that it was working to swiftly assess alternative semiconductors and take other steps to assure steady procurement of chips.

It maintained its prediction for an annual profit of 2.4 trillion yen for the year ending in March even though it reduced its annual production target by roughly 1%, to about 9.1 million vehicles.

Koji Endo, senior analyst at SBI Securities said, “The automaker is likely to comfortably exceed that forecast, given that it has now delivered 2.1 trillion yen in the first nine months of the year.”


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