Toyota hikes its profit forecast by 54% despite global chip supply issues.
Despite shortages in the supply of semiconductors globally, which affected automakers like Nissan and Honda, Toyota Motor ($™)Corp spiked its full-year earnings forecast by over 54%.
The world’s biggest automaker by vehicle sales reported earlier today that it had up to four-month stockpile of semiconductors and was not immediately expecting the global shortage to hit its production.
While other automakers had to cut its production, Toyota raised output for the fiscal year ending March. Its preparedness led to a spike in its shares. Shares in Toyota closed up 1.7% after hitting their highest level since July 2015.
The automobile industry has been struggling with a chip shortage since the end of last year, which has in some cases been worsened by the former U.S. administration’s sanctions on Chinese chip factories.
Toyota said operating profit rose to 987.9 billion yen in the three months ended Dec. 31 versus an average 565.51 billion yen profit analyst prediction.
For the fiscal year ending March 31, Toyota expects to record operating profit of 2 trillion yen ($19.13 billion), far higher than the market’s projection of 1.3 trillion yen.