Toyota's Q1 profit nearly wiped out as COVID-19 erodes car sales

Toyota's Q1 profit nearly wiped out as COVID-19 erodes car sales

Toyota Motor Manufacturing France resumes operations after five week closure amid coronavirus disea
FILE PHOTO: Employees wearing protective masks work at the Toyota Motor Manufacturing France plant as it resumes its operations after five weeks of closure during a lockdown amid the coronavirus disease (COVID-19) outbreak, in Onnaing, France, Apr 23, 2020. (REUTERS/Pascal Rossignol)

TOKYO:  Toyota Motor posted a 98 per cent plunge in its first-quarter operating profit on Thursday (Aug 6) as the coronavirus pandemic halved it global sales.

Japan's top automaker reported a profit of 13.9 billion yen (US$131.73 million) for the April to June quarter, its worst since the June 2011 quarter. Still, it was better than an average estimate for a loss of 179 billion yen based on a Refinitiv poll of seven analysts.

Toyota kept its forecast for an annual operating profit of 500 billion yen, which would be its weakest in nine years.

While business has begun to show signs of recovery, Toyota expects the pandemic will lead to a 13 per cent drop in its global car sales the year to March 2021. 

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Source: Reuters/kv