Toyota reports first net profit drop in 4 years
Toyota announces decline in net profit for 2022 fiscal year
Toyota has announced a decline in net profit for the 2022 fiscal year, marking the first time the company has experienced a net profit decline in the last four financial years. The announcement comes as the comprehensive balance sheet for the year ending in March was released, revealing that net profit had fallen 14 percent to 2.45 trillion yen ($18.1 billion). The decrease was attributed to rising material costs, which affected the company’s operating profit as well, leading to a 9 percent decline to 2.73 trillion yen ($20.1 billion).
Despite the decline, Toyota’s sales revenue reached 37.1 trillion yen ($275 billion), which was largely due to an increase in vehicle sales figures and the depreciation of the Japanese yen against foreign currency.
Looking ahead, Toyota has announced its comprehensive targets for the 2023 fiscal year, which will end in March 2024. The company expects net profit to increase 5.2 percent to 2.58 trillion yen ($19 billion) and sales revenues to increase 2.3 percent to 38 trillion yen ($281 billion).
Toyota also plans to increase its vehicle production and sales figures in the coming year. The company aims to manufacture 10.1 million vehicles in the 2023 fiscal year, up from 9.13 million in the previous year. Global vehicle sales figures are expected to reach 11.38 million in 2023, a 7.8 percent increase from the previous fiscal year.
To achieve its production goals, Toyota will strengthen its semiconductor supply chains, which have been disrupted by the ongoing global chip shortage. The company has previously warned that the chip shortage could result in a reduction of global production by 100,000 vehicles in September and 330,000 vehicles in October.
Despite the challenges posed by the chip shortage, Toyota remains optimistic about its future prospects and is working to mitigate the impact of the ongoing supply chain disruptions.
