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The Markets
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Manufacturing & engineering

Toyota shares drive higher on 4Q earnings beat

Toyota Motor (NYSE:TM) shares drove higher after the Japanese automaker posted a 3.4% jump in its net profit for the fourth quarter of fiscal 2023 as a weaker yen and rebounding sales offset soaring raw materials costs.

For the quarter ended March 31, the company topped expectations on both profit and revenue. It reported a profit of ¥552.2 billion ($4 billion) on revenue of ¥9.69 trillion ($72 billion).

Analysts, on average, had been expecting a profit of ¥519.11 billion ($3.9 billion) on revenue of ¥9.096 trillion ($67.7 billion) per a poll by Visible Alpha.

“While production plans fluctuated greatly due to the effects of semiconductor supplies, natural disasters, and COVID-19, dealers, suppliers and production sites have worked hard, leading to an increase of sales volume in all regions year-on-year,” Toyota said in a statement.

For the full-year fiscal 2023, the company posted a 14% decrease year-over-year in net income to ¥2.45 trillion ($18.2 billion), while revenue increased by 18.4% to ¥37.15 trillion ($276.4 billion).

Looking ahead to fiscal 2024, Toyota forecast an increase in sales volume in all regions and production of 10.1 million vehicles, up from 9.13 million vehicles produced in fiscal 2023 as the semiconductor supply chain improves.

The company guided revenue of ¥38 trillion ($282.6 billion) and an operating profit of ¥3 trillion ($22.2 billion) for fiscal 2024, in line with the Street’s expectations.

Toyota’s US-listed shares had added 2.4% at US$144.18 just after the opening bell in New York on Wednesday.

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on Twitter @emilyjjarvie

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