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Toyota Shares Drop After Sticking to Conservative Profit Outlook

  • Carmaker ‘not confident enough’ to raise profit forecast
  • Industry still facing headwinds, Toyota absorbing higher costs
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Toyota Motor Corp. kept its profit outlook for the current year, surprising investors who expected an upgrade and underscoring the carmaker’s concerns over its ability to produce vehicles amid parts shortages, rising material costs and pandemic disruptions in China, even as a weaker yen boosts income in its home currency.

Toyota shares fell 3% after the world’s biggest automaker kept its forecast for operating profit of 2.4 trillion yen ($18 billion) for the fiscal year through March, short of analysts average projection of 3.3 trillion yen. The result also fell short of estimates in the April-June quarter, at 579 billion yen versus the prediction for 808 billion yen in profit.