Toyota Bracing for 79.5 Pct Plunge in Operating Profit

Economy

Tokyo, May 12 (Jiji Press)--Toyota Motor Corp. <7203> said Tuesday that its consolidated operating profit is expected to plunge 79.5 pct in the year to March 2021 from the previous year to 500 billion yen, due to the adverse effects of the coronavirus pandemic.

The Japanese automaker projects its global vehicle sales at 8.9 million units, the first fall below 10 million units in eight years. The projection includes sales by subsidiaries Daihatsu Motor Co. and Hino Motors Ltd. <7205>.

Toyota expects its operating revenue to drop 19.8 pct to 24 trillion yen. It will use International Financial Reporting Standards starting this fiscal year.

The company did not release its net profit or loss projection due to uncertainties over the impact from the pandemic.

"The latest shock is having a far stronger impact than the Lehman shock," Toyota President Akio Toyoda told a press conference, referring to the global financial crisis of 2008.

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