Toyota Motor Corp. said Thursday that its first-quarter net profit slumped 74%, as the coronavirus pandemic hit sales around the world.
The Japanese auto maker First-quarter revenue dropped 40pc and has now issued a new net profit guidance, saying it expects net profit to fall 64pc. the top car maker in Japan 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.
“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 company said Thursday that it sold around 200,000 more vehicles than anticipated in the April-to-June quarter. It now expects to sell 7.2 million vehicles in the financial year ending in March, up from a May forecast of seven million but still well below the previous financial year’s total of nearly nine million
“The pace of recovery in a number of regions has been faster than we had initially forecast,” a Toyota spokesman said.
“But the virus situation continues to place many uncertainties on the business outlook … and we see a possibility that our forecast could change.”
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