Toyota, which reported a record profit for the year ended March 2022, has seen its fortunes reversed in the last quarter, which saw it grappling with supply chain issues and rising operating costs.
The Asian auto giant recently announced it was cutting production by 4,000 units in Japan due to heavy rains.
The world’s largest automaker by volume reported less profit for Q2 2022. However, Toyota has lifted its full-year guidance for net income and revenue, although most of the increase comes from the weakening of the Japanese currency.
Operating profit for the quarter was 578.6 billion yen ($4.24 billion), a decline of 42 percent. The operating profit margin was 6.8 percent, nearly half of the 12.6 reported in the same quarter last year. Net income was 736.8 billion yen ($5.40 billion), down 18 percent. Revenue rose 7.0 percent to 8.49 trillion yen ($62.27 billion).
Toyota sold 2.01 million vehicles in Q2, a dip of 6.3 percent, covering all of the company’s brands. Retail sales dropped 7.8 percent to 2.54 million.
The company had earlier pledged to assist its suppliers struggling with soaring prices. However, Toyota could recoup part of the money spent through the weakening yen when bringing back its international earnings to Japan.