Toyota Motor expects profit to drop 80%
The company’s stocks fell nearly 2% after the announcement
Stocks impacted: Toyota Motor Corp (7203), Honda Motor Co (7267)
The biggest Japanese company by market capitalization did not give a net profit forecast for the fiscal year through March 2021 but warned its operating profit will fall almost 80% due to the adverse effects of the new coronavirus pandemic. In the year to March 2021, the automaker expects its operating revenue to drop 19.8% to 24 trillion yen. President Akio Toyoda said the company is facing its biggest crisis since the global financial crisis. Damage from the coronavirus cost Toyota 145 billion yen (US$1.4 billion) in operating profit for the latest quarter. The company’s stocks fell nearly 2% after the announcement. Meanwhile, Honda Motor Co (7267) today posted an 13% decline in annual operating profit that came in at 634 billion yen ($5.9 billion). Honda shares dipped by almost 3.5% following the report.
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