Toyota says its Q1 revenue declined by 40% on a year over year basis
- Toyota says its Q1 revenue declined by 40% on a year over year basis.
- The Japanese automaker reports £1.14 billion of net profit in Q1.
- The car maker performed the worst in North America in the first quarter.
Toyota Motor Corp. (TYO: 7203) revealed its net profit in the fiscal first quarter to have tanked 74% on Thursday. The company attributed the decline to the Coronavirus pandemic that pushed its factories into temporarily shutting down in recent months and weighed on global demand. Toyota fully resumed global output for the 1st time since February at the end of July.
Shares of the company jumped about 3% on Thursday. At £49 per share, Toyota Motor is currently a little under 10% down year to date in the stock market after recovering from an even lower £42.79 per share in March when the impact of the health crisis was at its peak. Interested in investing in the stock market? Here are the top stock brokers that you can work with, in 2020.
Toyota Motor reports £1.14 billion of net profit in Q1
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The Japanese car manufacturer reported £1.14 billion of net profit in the first quarter versus the year-ago figure of £4.46 billion. According to FactSet, experts had forecast the company to see a much lower £480 million of net loss in the quarter that concluded in June.
In terms of revenue, the automaker registered £33 billion in Q1 that represents a 40% decline on a year over year basis. Its competitor, Honda Motor, also reported a 47% decline in Q1 revenue on Wednesday.
Toyota also highlighted on Thursday that its operating profit in Japan dropped to £560 million in the recent quarter that translates to a massive 82% decline as compared to the same quarter last year. In the rest of Asia, the operating profit took a 61% hit in Q1 to £310 million. In a bid to cushion the economic blow from COVID-19, Toyota approached two major Japanese banks in March seeking £6.83 billion in credit.
Toyota Motor performs the worst in North America in Q1
Toyota’s performance was noted the worst in North America where it concluded the quarter with £490 million of loss versus £810 million of profit in the comparable quarter of last year.
For the full year, the Aichi-based company now forecasts a 64% decline in net profit to £5.26 billion. Toyota also estimates a 20% annualised decline in revenue in fiscal 2021 to £170 billion.
At the time of writing, the Japanese automaker has a market cap of £160 billion and a price to earnings ratio of 9.32.