Toyota warns of 64pc drop in full-year net profit

7 August, 2020 12:00 AM printer

Toyota warns of 64pc drop in full-year net profit

TOKYO: Toyota on Thursday warned of a 64 percent drop in full-year net profit and reported a slump in quarterly earnings, as the coronavirus pandemic shreds the global auto market.

Japan's top car maker, which had previously declined to give a bottom-line forecast because of ongoing uncertainty, now projects net profit at 730 billion yen ($6.9 billion) for the fiscal year to March, down from 2.07 trillion yen the previous year, reports AFP.

Its forecast of annual operating profit remained unchanged at 500 billion yen, down nearly 80 percent from the previous year.

"The impact of COVID-19 is wide-ranging, significant and serious, and it is expected that weakness will continue for the time being," Toyota said in a statement.

The warning came as Toyota reported a 74.3 percent plunge in net profit for the three months to June, with quarterly revenue down more than 40 percent.

By region, operating profit in Japan dropped more than 80 percent in April-June, while it logged losses in North America and Europe.

Carmakers around the world have been battered by the pandemic, with many relying on government help, as it slams the global economy into reverse and forces people to stay at home.

"It was a tough quarter for all Japanese automakers. Toyota was no exception," said Satoru Takada, auto analyst at TIW, a Tokyo-based research and consulting firm.