Toyota Raises its Profit Forecast 54%
Toyota has commented Wednesday that it has an up-to-four-month stockpile of chips and is not immediately expecting a global chip shortage to hit production. The leading automaker has further hiked up its full-year earnings forecast by a whole 54%, surpassing all expectations.
Unlike other companies, such as Nissan and Honda, who had to cut their production due to semiconductor shortages, Toyota has only raised its output for the fiscal year ending March.
"For the near term, we do not see any decrease in production volume due to the chip shortage, but we do see risks of a chip shortage”, the company’s CFO said.
When asked as to whether the automaker is seeing limited impact of the chip shortage compared to competitors, she said Toyota has been constantly providing its short-term and long-term production volume plans to suppliers.
Toyota expects to sell 9.73 million vehicles this year, up 3.3% from a previous forecast of 9.42 million. The company also foresees record operating profit of 2 trillion yen, far higher than an earlier projection of 1.3 trillion yen.
As a result, Toyota stock closed up 1.7% after hitting its highest level since July 2015.
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