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Toyota had its first quarterly loss in nine years

Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Sales slumped due to weak demand

As the pandemic took over the world, everything was put on hold. Even though the factories and businesses started to resume their activities, the pandemic's impact is still felt, especially when it comes to quarterly earnings. One of the companies affected by the pandemic is the Japanese Toyota

The giant carmaker reported its smallest quarterly profit in almost a decade. The company’s net profit figures came in at 158.84 billion yen ($1.50 billion) from last year’s 619.13 billion yen ($5.8 billion). The numbers topped the expected loss of 66.73 billion yen ($632.7 million). 

Toyota’s revenue for the quarter came in at 4.601 trillion yen ($43.625 billion) – a 40% drop from the same quarter last year.  

The North American operations decreased by 68.5 billion yen ($648.97 million), compared to last year’s profit of 112.6 billion yen ($1.066 billion). At the same time, the Asian operations, excluding Japan, dropped 61% to 42.8 billion yen ($405.4 million). 

At a yearly level, Toyota expects the net profit to slip 64% to 730 billion yen, while the revenue is to decline by 20% to 24 trillion yen ($227.36 billion). 

The weak report didn’t affect the market’s reaction. During pre-market trading, Toyota stock price gained more than 2%.

See how the pandemic impacted other carmakers on!


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.