By Noriyuki Suzuki,
Toyota Motor Corp. said Wednesday it expects net profit to grow 2.4 percent to 2.3 trillion yen ($21 billion) in the current business year, building further on its stronger-than-expected recovery from the initial fallout from the coronavirus pandemic.
The growth outlook for the year through next March follows an unexpected 10.3 percent rise in net profit to 2.25 trillion yen in fiscal 2020 when the bottom line was supported by solid sales in its two important markets of the United States and China and by foreign exchange gains.
The world's biggest carmaker by volume plans to sell 10.55 million vehicles worldwide in fiscal 2021, up 6.4 percent from 9.92 million the year before, expecting year-on-year growth in all markets.
Operating profit is forecast to gain 13.8 percent to 2.5 trillion yen as sales are expected to rise 10.2 percent to 30 trillion yen.
Toyota has weathered the impact of the pandemic well in contrast to domestic rivals such as Nissan Motor Co. and Honda Motor Co. that have seen a much slower recovery.
"A further recovery in sales is a major factor (behind the outlook)," Toyota Chief Financial Officer Kenta Kon told a press briefing. Toyota will continue with its efforts to cut costs and secure stable supply chains, he said.
In the just-finished year through March 31, Toyota's operating profit fell 8.4 percent to 2.2 trillion yen, as sales fell 8.9 percent to 27.21 trillion yen with a 5.1 percent fall in global volume sales.
Toyota is ramping up investment to meet diversifying needs for safer and zero-emission vehicles such as hybrid, electric and autonomous vehicles.
In fiscal 2020, Toyota spent about 1 trillion yen in areas such as connected and electrified cars and is planning to boost spending by around 20 percent in the current year, Kon said.
The automaker unveiled a target of selling 8 million electrified vehicles globally in 2030, which roughly accounts for about 80 percent of Toyota's annual auto sales.
The firm earnings forecast came as the auto industry is grappling with a shortage of semiconductors. A fire at a plant operated by auto chip supplier Renesas Electronics Corp. in March added to the woes.
The impact of tight chip supplies has been factored in to some extent, according to Toyota. "We do not expect a major impact...but we cannot be off guard," Kon said.
Toyota, which in 2020 reclaimed its title as the world's top-selling automaker for the first time in five years, including sales by group companies, has been relatively unscathed while its peers have been forced to cut production.
Nissan expects a production cut of around 250,000 vehicles in fiscal 2021 due to the shortage of semiconductors, the Yokohama-based automaker said Tuesday.
In the United States, Ford Motor Co. expects production to fall by 1.1 million vehicles in 2021 from its initial plan due to the chip shortage.
Chip supplies have been tight since late last year as the pandemic boosted demand for products equipped with them, ranging from laptops and game consoles. They also play a key role in connected and electrified cars.
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