Toyota's operating profit may fall 15% in Q1 this fiscal year as production targets are cut several times

Toyota will report its fiscal first-quarter results this Thursday, and according to a survey by Refinitiv, the company's operating profit is expected to fall 15 percent to 845.8 billion yen due to chip shortages and supply chain problems, although the decline is the smallest in three quarters. Toyota has lowered its monthly production target for April-June three times, 10% below the initial target.

Reuters reported that Toyota, like other manufacturers, is struggling to cope with rising costs and potentially weaker consumer demand due to inflation. Meanwhile, Toyota's production problems are cause for concern, as they mark a departure from its initial success in addressing supply issues at the start of the outbreak.

Koji Endo, an analyst at SBI Securities, said Toyota's profit surged in the first quarter last year, but the only positive factor in the first quarter of this year may be the weak yen. Koji Endo also noted that "last year's first quarter was a period of radical cost-cutting, compared to this time when profits could fall sharply ".