Toyota posts strong performance despite Corona... Net profit increases by 10%

[Asia Economy Reporter Yujin Cho] Toyota of Japan announced on the 12th that its net profit for the 2020 fiscal year, which ended in March, increased by 10.3% year-on-year to 2.2452 trillion yen (approximately 23 trillion won).

Despite the COVID-19 pandemic, rapid demand recovery led to increased sales mainly in the United States and China, driving strong performance.

During the same period, sales revenue recorded 27.2145 trillion yen, down 8.9% compared to the previous year.

Toyota also announced a plan to repurchase its own shares worth 250 billion yen amid expectations of performance recovery. Toyota expects its annual net profit this year to return to pre-COVID-19 levels.

According to the earnings forecast for the 2021 fiscal year announced on the same day, sales revenue is expected to increase by 10.2% to 30 trillion yen, and net profit is expected to rise by 2.4% to 2.3 trillion yen.

On the same day, Bloomberg reported that Toyota, which reclaimed the top spot in global automobile sales last year by surpassing Germany's Volkswagen, is preparing for a V-shaped demand recovery this year.

Learning from the Great East Japan Earthquake that occurred in March 2011, Toyota has increased inventory of key components such as semiconductors, and it is known that Toyota has suffered less from the global semiconductor chip shortage compared to other automakers like Volkswagen.

Earlier, Toyota announced plans to produce 10.4 million vehicles worldwide in the 2022 fiscal year, combining its two major brands, Toyota and Lexus.

Toyota plans to produce 3.3 million units in Japan and 7.1 million units outside Japan next year, aiming to increase production by 9.5% compared to this year's plan (9.5 million units).

If the plan proceeds as scheduled, Toyota's global annual production volume will exceed 10 million units for the first time in 2022.

Although global new car demand is surging due to expanded COVID-19 vaccinations, concerns over production disruptions in the finished car industry are rising due to semiconductor supply shortages.

This content was produced with the assistance of AI translation services.