TOKYO (Reuters) – Toyota Motor Corp is expected to report a small quarterly profit increase on Tuesday, with soaring costs of parts and materials nearly offsetting the benefits from the plunging Japanese yen and a rebound in production.
The world’s biggest automaker by sales said last week its global production rebounded by 30% in the quarter that ended in September, but warned shortages of semiconductors and other components would continue to constrain output in coming months.
A gradual improvement in the auto chip shortage situation should help raise output in the second half of the current fiscal year, but investors’ focus will shift to demand outlook, other potential disruptions in the supply chain and its electric vehicle strategy when Toyota reports earnings.
“The point to look out for is why there has been such a gap in the supply chain process,” said Kohei Takahashi, an analyst at UBS Securities Japan, noting improvement in chip supplies.
Read more: https://www.business-standard.com/article/automobile/toyota-profit-to-rise-but-eyes-will-be-on-its-supply-chain-ev-strategy-122103100181_1.html
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