Hit by Rising Costs and Supply Snarls, Toyota Profit Tumbles 42 Percent

Hit by Rising Costs and Supply Snarls, Toyota Profit Tumbles 42 Percent
The Toyota emblem on the tyre rim of a vehicle during the media day of the 41st Bangkok International Motor Show in Bangkok, Thailand, on July 14, 2020. Jorge Silva/Reuters
Reuters
Updated:

TOKYO—Toyota Motor Corp.’s profit slumped a worse-than-expected 42 percent in its first quarter as the Japanese automaker was squeezed between supply constraints and rising costs.

Operating profit for the three months ended June 30 sank to 578.66 billion yen ($4.3 billion) from 997.4 billion yen in the same period a year ago, Toyota said on Thursday, capping a tough period. It has repeatedly cut monthly output goals due to the global chip shortage and COVID-19 curbs on plants in China.