logo
  

Toyota Cuts FY Production View; Backs Operating Income Outlook

Toyota Motor Corp. (TYT.L,TM) on Friday announced changes to production plans for the month of September and October, and also trimmed view for fiscal year ending March 31, 2022, citing the shortage of certain parts caused by the spread of COVID-19 in Southeast Asia.

Further, the company maintained full-year operating income view of 2.5 trillion Japanese yen.

In pre-market activity on NYSE, Toyota shares were gaining around 1.1 percent to trade at $182.

The global production volume affected by the adjustments will be approximately 70,000 units for September, comprising 40,000 units overseas and 30,000 units in Japan. The volume affected by adjustments in October will be 330,000 units, including 180,000 units overseas and 150,000 units in Japan.

Due to the impact of the production cut, the company now projects full-year volume of 9 million units, down from the 9.3 million units expected earlier.

Toyota noted that the outlook for November and beyond is unclear, but current demand remains very strong. As a result, the production plan for November and beyond assumes that the previous plan will be maintained.

The reasons for the production adjustment include a decline in operations at several local suppliers due to the prolonged spread of COVID-19 in Southeast Asia and the impact of tighter semiconductor supplies.

Toyota said it is continuously assessing the situation as the demand for semiconductors in all industries continues to increase, and is discussing medium- to long-term countermeasures with related companies.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Kraft Heinz is recalling around 5,760 cases of Capri Sun Wild Cherry Flavored Juice Drink Blend beverages due to potential for chemical contaminants, the U.S. Food and Drug Administration said. The recall involves 6.6 FL OZ Capri Sun Wild Cherry Flavored Juice Drink Blend in individual foil pouches packed in paperboard cartons. Delta Air Lines is set to resume flights on its routes between the U.S. and Japan from October 30, 2002 in anticipation of easing of COVID-19-related travel restrictions, which were put in place two years ago. The airline joins American Airlines and United Airlines, who have reportedly announced the resumption of flights to Japan. Tech major Apple Inc. has asked corporate employees to return to offices at least three days a week by September 5, Bloomberg reported. The latest deadline was issued following several delays to its previous deadlines amid a resurgence in COVID-19 cases. As per the report, the company will require employees to work from offices on Tuesdays, Thursdays and a regular third day to be determined by...
Follow RTT