Toyota Motor's Second-Quarter Net Profit Likely Fell

Dow Jones
Yesterday
 
 

Toyota Motor is scheduled to report its second-quarter results on Thursday. Here is what you need to know:

 

NET PROFIT: Toyota's net profit is expected to have fallen 16% to 779.6 billion yen, equivalent to $4.91 billion, for the three months ended September, according to a poll of analysts by Quick. Net profit was Y932.0 billion in the year-earlier period.

REVENUE: Revenue is estimated to have risen 7.3% to Y13.282 trillion, according to the Quick poll.

The stock has declined 9.1% this year through Tuesday, weighed by concerns about higher fuel costs, a sales slump in China and deteriorating consumer sentiment amid the Middle East conflict.

 

WHAT TO WATCH:

--Toyota has projected group global sales to decline 0.9% to 11.18 million units, revenue to rise 6.5% to Y54.000 trillion and net profit to drop 15.5% to Y3.250 trillion for the current fiscal year. Investors will be focusing on any changes management may make to the annual forecasts.

--Toyota has estimated that disruptions related to the Middle East conflict will drag operating profit by Y510 billion for the year ending March. Investors will watch closely for any steps being taken to mitigate those impacts.

--Electrified vehicles, including hybrid cars, plug-in hybrids and battery-electric vehicles, made up 55.3% of Toyota and Lexus cars sold in its first quarter, up from 47.4% a year earlier. The carmaker sold about 114,000 battery EVs, up from about 47,000 units a year earlier. Investors will be paying attention to the pace of EV sales growth and any related initiatives.

 
 

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