Toyota had its first quarterly loss in nine years

By: Miguel A. Rodriguez

09:45, 14 September 2020

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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 CAPEX.com!

Sources: cnbc.com, finance.yahoo.com

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